Jakarta, Indonesia Sentinel — Indonesia has officially introduced additional import duties in the form of anti-dumping tariffs (BMAD) on ceramic tile imports from China. The decision was announced by Finance Minister Sri Mulyani Indrawati through the issuance of Minister of Finance Regulation No. 70 of 2024, concerning the Imposition of Anti-Dumping Duties on Ceramic Tile Imports from the People’s Republic of China.
According to CNBC Indonesia, the regulation was signed by Minister Sri Mulyani on October 9, 2024, and will take effect 10 days after its enactment, starting on October 24, 2024. The anti-dumping tariffs will remain in place for five years.
“The introduction of BMAD will mark the revival of the domestic ceramic industry, which has been severely affected by dumping practices over the past decade. These practices have caused several factories to halt production, and the national production utilization rate has significantly declined,” said Edi Suyanto, Chairman of the Indonesian Ceramic Industry Association (ASAKI), as reported by CNBC Indonesia on October 16, 2024.
Although the BMAD rates are lower than the 100% initially speculated, ASAKI remains optimistic.
“ASAKI views the rates positively, even though the imposed BMAD ranges between 35% and 50%, which is below our initial hope of reaching levels similar to Mexico and the United States, where the rates exceed 100%,” Suyanto added.
Industry players are now looking forward to the extension of safeguard import duties, which are expected to be implemented in November 2024, to further complement the BMAD rates. The restriction on Chinese ceramic imports is anticipated to boost the national production utilization rate from its current level of 63% to 67-68% by the end of 2024. By 2025, the industry aims to reach an 80% utilization rate, and 90% by 2026.
“In terms of installed production capacity, Indonesia’s ceramic industry ranks fourth in the world, producing 675 million square meters per year, behind China, India, and Brazil. However, in terms of actual production, we are still ranked eighth globally. ASAKI is targeting Indonesia to be in the top five manufacturing countries by 2025, according to Ceramic World Review,” Suyanto stated.
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The anti-dumping tariff on Chinese ceramic tile imports was established following an investigation by the Indonesian Anti-Dumping Committee, which found evidence of dumping practices harming the domestic industry.
“The investigation showed that dumping caused damage to the domestic industry, with a clear causal relationship between the dumping and the industry’s losses,” according to PMK No. 70/2024, issued on October 17, 2024.
The regulation lists 32 Chinese companies that will be subject to the anti-dumping duties. The tariffs range from as low as Rp13,446 (roughly $0.85) per square meter to a maximum of Rp94,544 (about $5.95) per square meter.
This move signals Indonesia’s efforts to protect its domestic industries from unfair competition while attempting to restore its position in the global ceramic market.
(Raidi/Agung)
