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“We are still investigating and if it is proven that manipulations have occurred, the policy will be corrected,” the director-general of basic manufacturing industries, Panggah Susanto, was quoted as saying in a report published on Sunday June 16.
He said the ministry of industrial affairs had received a lot of complaints from domestic steel producers following the rise of alloy steel imports into the country.
The Indonesian government imposes no import duty on alloy steel.
Importers are suspected to have manipulated the policy by stating that the iron and steel products they import are alloy steel to avoid paying import duties.
The government will check the content of alloying elements in imported steel products in cooperation with marine cargo surveyor Sucofindo and the customs office, Panggah said.
He said in certain cases, alloying elements were added to the steel products just to avoid duties.
Investigations will be carried out immediately to avoid further injury to domestic producers, Panggah said.
The Indonesian government has so far implemented an anti-dumping policy to protect the country’s steel industry, particularly from Chinese imports, he added.
China was the second-largest source of steel imports into the Assn of Southeast Asian Nations region in 2012, just behind Japan.