Auto Sector in Indonesia wants Relief from Steel Anti-dumping Duty

The Indonesian government approved the request of Indonesia’s automotive sector to be exempted from the anti-dumping duties on steel. Import duties - ranging between 7 and 55.6 percent - for steel imports from China, Japan, South Korea, Taiwan and Vietnam to protect the domestic steel industry were slapped 2013.

Anti-Dumping Duties on Imports of Steel Products:

Country of Origin	Tariff Range (%)
China	13.6 - 43.5
Japan	18.6 - 55.6
South Korea	10.6 - 11.0
Taiwan	7.0 - 20.6
Vietnam	12.3 - 27.8

Source: Finance Ministry Regulation No. 65/2013 on Anti-Import Duties

Currently, Indonesia’s automotive industry requires about one million tons of steel plates, 500,000 tons of HR Steel, and another 500,000 tons of CR Steel each year.

Toyota Protests

Warih Andang Tjahjono, Vice President of Toyota Motor Manufacturing Indonesia, said the government should be more careful when making new policies and involve the academic as well as the business community to make effective and efficient policies. The aforementioned anti-dumping duties for steel imports was clearly a mistake in the case of the automotive sector.

In order to supply the whole range of steel products that are needed by the automotive industry to produce cars, Indonesia’s largest steel maker Krakatau Steel and Japan-based Nippon Steel & Sumitomo Metal Corporation created a joint venture two years ago. Construction of the plant is in progress and should be completed by 2018.