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teel producers have again called on the government to immediately curb the import of boron-content alloy steel because the products, having enjoyed lower import duties, are sold at cheaper prices in the domestic market.

Indonesian Iron and Steel Industry Association (IISIA) chairman Irvan Kamal said the influx of imported boron-content alloy steel in the local market had made industry players increasingly concerned due to the negative impacts.

'€œThe surge in boron-added steel imports in recent years has put the domestic industry under heavy pressure and eroded the competitive edge of local products in terms of price,'€ Irvan said Monday.

An immediate response from the government would rescue business players, who at the moment were mulling cutting production and reducing the number of employees, he added.

Irvan said the government needed to immediately implement a policy to control the import of boron-content alloy steel. Such policy, however, needed to allow imports for the industries that needed the material, such as the automotive industry, he added.

The steel business group submitted its complaint last year to Industry Minister MS Hidayat, who then recommended then trade minister Gita Wirjawan to tighten the alloy steel import mechanism.

In the document, the association alleged that alloy steel, which contains a very small boron content of only 0.0008 percent, had benefitted from lower or free import duties.

Without the boron content, the steel would be placed in a different category and subject to different tariff lines, which are regular import duties, anti-dumping duties and safeguard duties placed by the country'€™s authority.

Profile steel containing boron, for example, enjoys import duties of up to 5 percent, while non-alloy steel gets higher duties of up to 15 percent.

Non-alloy steel or carbon steel in the form of hot rolled coil (HRC), cold rolled coil (CRC) and profile are subject to anti-dumping duties of between 5.9 percent and 55.6 percent.

Imports of non-alloy steel in the form of HRC and CRC, which plunged significantly by 44 percent in 2010, 40 percent in 2011 and 25 percent in 2012, are accused of having been shipped under the category of alloy steel, of which imports from China, Japan and Taiwan, have climbed significantly, according to a study by the Industry Ministry.

The trade practice has caused the government to lose Rp 145 billion (US$12.24 million) in tax revenue each year.

The entry of low-boron content alloy steel is not specific to Indonesia, as other Southeast Asian nations are also experiencing similar threats.

The trade authorities in several neighboring countries, such as Malaysia and Thailand, have taken bold measures to curb alloy steel imports, particularly from China, that have flooded their home markets.

In response to the issue, Hidayat said the government was finalizing a policy to control the import of steel alloyed with boron and that the Trade Ministry would announce the measure in the near future.