The Indonesian Anti-Dumping Committee (KADI) on 12 February proposed the imposition of anti-dumping duties (ADDs) on the imports of polypropylene (PP) co-polymer from five origins.
This follows an 18-month investigation since August 2023.
The proposed ADDs for products under the HS code 39023090 are pending review by the Indonesian trade ministry. Market participants expect an outcome around the second quarter of this year.
The affected exporters from South Korea, Singapore, Malaysia, Vietnam and the UAE, as well as several local Indonesian importers have been asked to submit relevant data and provide their responses during the investigation period. Imports from these five countries made up 84pc of Indonesia's PP co-polymer imports in 2022 – the year which is being investigated for dumping activity.
KADI has proposed the below ADDs to be imposed on PP co-polymer imports into Indonesia, with rates varying depending on the exporter and country of origin.
- Exporters from South Korea: 7.17-19.58pc
- Exporters from Vietnam: 11.4pc
- Exporters from Malaysia: 13.45-29.01pc
- Exporters from Singapore: 11.6-13.06pc
- Exporters from UAE: 21.02pc
Exemptions will be given to the imports of selected PP co-polymer grades including random co-polymer, terpolymer, elastomer and block co-polymer with specific parameters, according to an official notice seen by Argus. These grades are likely not produced locally or different from local supplies in terms of specifications and end usage.
The ADDs are proposed to be valid for five years upon enforcement.
More protectionism measures underway
KADI began the PP co-polymer anti-dumping investigation in 2023 prompted by Indonesia's largest petrochemical producer, Chandra Asri, which is also the sole producer of PP co-polymer in the country.
The Indonesian Trade Security Committee also began an anti-dumping investigation into imports of linear low-density polyethylene (LLDPE) under the HS code 39011092 in September last year, targeting several LLDPE importers based in Indonesia, but it is unclear how long the investigation will take.
Chandra Asri also sought the imposition of anti-dumping measures for the imports of PP homopolymer under the HS code 39021040 into Indonesia in October last year and an investigation is ongoing, according to market sources.
Growing PE and PP oversupply globally and weak regional downstream consumption in the past few years have led to higher imports, pressuring regional prices and leading southeast Asian producers to seek measures from local governments to protect their domestic market share.
But the imposition of ADDs or any additional safeguard duties is likely to result in higher costs of locally manufactured plastic goods, which will in turn be passed on to consumers.
