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Govt secures RI market from US$2.8 million worth of unqualified steel from China

The unqualified imported steel products were imported from China and sold at a lower selling price, triggering unfair competition with the potential to damage the domestic steel industry producing similar products. 

Wike Herlinda (The Jakarta Post)
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Jakarta
Tue, August 9, 2022

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Govt secures RI market from US$2.8 million worth of unqualified steel from China Workers make iron bars in a steel factory in Lianyungang, in China's eastern Jiangsu province on Feb. 12, 2021, the first day of the Lunar New Year. (AFP/-)

T

he Trade Ministry has temporarily secured Rp 41.68 billion (US$ 2.8 million) worth of imported steel products from China that are suspected of not meeting the quality requirements of the Indonesian National Standard (SNI). 

The steel products secured included zinc-coated sheet steel (BjLS) and galvanized steel coils, which were to be used as raw materials, as well as galvanized steel coils with aluminum-zinc alloy (BjLAS), weighing around 2,128 tons. 

The temporary security measure was carried out in two firms located in Serang Regency, Banten and Surabaya, East Java, on Tuesday. 

The firms were allegedly importing galvanized steel coils as raw materials from China that did not meet the Indonesian standards, producing BjLS against SNI requirements and selling these products without SNI product certification (SPPT SNI) and a goods registration number (NPB).

Read also: Why EU imposes countervailing duties on Indonesian steel from Morowali

Trade Minister Zulkifli Hasan said the government had received numerous reports about continuous BjLS and BjLAS imports from China. After being investigated he said, the products were declared unqualified for SNI, namely requirements SNI 07-2053-2006 and SNI 4096-2007. 

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“The secured steel products were recorded as weighing 2,128 tons with a value of Rp 41.68 billion. This temporary security measure was carried out to minimize consumer losses,” he noted in a statement released on Tuesday. 

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