Indonesian Tyre Industry Hit by Dumping Duties

JAKARTA, Indonesia – “Indonesia's bicycle tyre industry might be hard hit this year by an unexpected anti-dumping duty between 5-10% imposed by the Turkish government”, said Aziz Pane, the chairman of the Indonesian tire association (APBI) yesterday in The Jakarta Post. “

Next to the bicycle tyres the Turkish government also imposed punitive tariffs on Indonesian motorcycle tyres. The four Indonesian tyre producers accused of dumping their products in Turkey are PT Industri Karet Deli, PT Hung A Indonesia, PT Surabaya Kencana Tyre Industry and PT IRC INOAC Indonesia.

“The Turkish government’s decision on dumping will affect our export target that we earlier estimated would double from last year’s exports of € 12.8 million (UD$ 20 million),” claims Aziz Pane.

Dumping is said to occur when a country’s manufacturers export products to another country at prices below those charged in the home market or below their production cost, while anti-dumping measures are designed to counter alleged dumping practices by imposing additional import duties.

Aziz said Indonesia’s bicycle and motorcycle tyre export sales were about 370,000 units per year, with the biggest slice exported to Asian countries, while domestic sales stood at 23 million units annually.

“We have exported bicycle and motorcycle tyres to Turkey in July with the usual import duties. Suddenly we were confronted with an increase of these import duties related to the alleged dumping since August 1st while our own government did not inform us about this immediately. We are disappointed with our government.”

Commenting on the dumping allegation, Aziz said no Indonesian tyre producer sold their products in the Turkish market at dumping prices as alleged, and they ‘feel shocked’ about this decision.

The Turkish Anti-dumping Authority already sent a dumping allegation over Indonesian inner tube and tyres to Indonesia on March 20 of this year. Malaysia received a similar allegation from the Turkish government.