"We were forced to close one factory line and rest 500 employees as a result of a flood of imported steel products," said Managing Director of Ispat Indo, Baldeo Prasad Banka, in a statement on Monday (09/26/2016).
Banka said the invasion led to a market share of imported steel products manufacturer of steel wire rod have decreased dramatically from 60 percent to just 20 percent.
Ketut Setiawan, a spokesman for PT Gunung Garuda producing steel profile, the case of a flood of steel imports previously been seen in 2015.
The import of steel products packaged as mild steel by adding alloying or known as alloy steel such as carbon steel products.
Alloy steel products as long as it got the facility of import duty from the government, but then it is misused importers to enter alloy steel products containing substandard steel, even in some cases there was hardly any steel content thereof.
This condition makes the price of imported steel have become cheaper than steel made domestic producers.
The previous government never managed to tighten this alloy steel imports by imposing import duty on alloy steel products that do not have ISO standards.
"This rule was effective as well, but for some reason was again the case this year," said Ketut.
PT Gunung Garuda is the usual profile steel manufacturer intended for construction and infrastructure.
The company also felt the decline in market share due to the invasion of imported steel alloy steel guise.
"Demand for steel profiles are supplied from our company and PT state of the arts (a subsidiary of PT Krakatau Steel) ranges from 400,000 tonnes per year, but lately that number was never achieved," said Ketut.
Ketut said there are three things that can be taken by the government to protect the domestic steel industry ie wearing anti-dumping duty if it is proven imported steel was accidentally sold cheap, safe-guard tax if the import of steel is already threatening the survival of businesses, as well as through technical measurement with the use of SNI ,
From January to September 2016, there were 46,000 tons of carbon steel products enter through the port of Tanjung Priok. As for September already signed 13,000 tonnes of the same product.
"Previously, carbon steel products at most only 1,000 to 2,000 tons. With the entry of the amount of carbon steel as much as it would be able to threaten the survival of the steel industry in the country," said Ketut.
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