Three Strategies of the Ministry of Industry Facing the Spike of Imported Steel from China
By : Ridwan And Aldi Firhand. A | Wednesday, March 07 2018 - 18:01 IWST
Metal And Steel Industry
INDUSTRY.co.id - Jakarta, Director General of Metal, Machinery, Transportation and Electronics Industry (ILMATE) of the Ministry of Industry, Harjanto, confirmed that the US policy will make Chinese steel producers shift their exports to other countries, including Indonesia. Therefore, it reviewed several attempts to suppress steel imports from China.
"One of them concerning Minister of Trade Decree Number 22 Year 2018 concerning Provisions on the Import of Iron or Steel, Alloy Steel and Derivative Products, we will try to build the database as a guide to the Ministry of Trade what steel products already produced in the country, which are still lacking and which ones may be imported, "said Harjanto in Jakarta (7/3/2018).
In addition, he added, it will conduct tanker breakout or alloy steel HS code. During this time, many Chinese steel producers use a zero percent alloy slot for incorporating carbon steel products into Indonesia coated with boron.
"We will be discussed with the relevant ministries and agencies because the import of steel alloys has increased tremendously, this is for automotive and heavy equipment, but the application is used for construction and so on," he explained.
The last effort is to require a certificate of Domestic Content Level (TKDN) for steel products. Thus, steel products that do not have TKDN certificate can not participate in the tender.
"That's the thinking that exists now, need the support of other ministries and agencies and industries to suppress the import of steel," he said.
Last week, US President Donald Trump announced that the United States would impose a 25 percent import tariff on steel and 10 percent of aluminum from around the world this week.
Besides China, other steel producing countries, such as Europe, are also affected. They promise to impose high tariffs on US products.
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