Japan removes dumping charge on RI paper

JAKARTA. Japan has finally removed its dumping allegation against Indonesia as no indications were found that the paper producers had conducted unfair trade practices.

The Trade Ministry’s trade defense director, Oke Nurwain, said that the Japanese anti-dumping authority had officially notified Indonesia that the result of its investigation showed no dumping practices were involved.

“As the investigation shows a negative margin on dumping, the Japanese government rules that it will not impose anti-dumping duties on Indonesian paper,” he told The Jakarta Post in an interview. Without the punitive duties, Indonesian products would garner a bigger opportunity to grab higher market share in Japan’s market, Oke added.

Under the rules of the World Trade Organization (WTO), a country may charge anti-dumping duties on imported goods whenever investigations reveal exporters commit unfair trade practice by means of selling below their production costs or below prices in their countries of origin.

The Japanese anti-dumping authority commenced the probe into the case on June 29 following a request by eight producers, including Nippon Paper Industries Co Ltd, Nippon Daishowa Paperboard Co.Ltd and Oji Paper Co Ltd.

The Japanese companies accused 11 Indonesian paper producers including firms under two local paper giants — Sinar Mas Group and PT Riau Andalan Pulp and Paper — of dumping practices.

The Indonesian companies were charged with selling their products with dumping margins of between 7.55 percent to 15.78 percent.

Statistics from Trade Map show that for both types of paper, Indonesia had a strong presence in the Japanese market.

Last year, Japan imported $494.13 million worth of the first type of paper, or 78.71 percent of its overall purchase, while it bought $5.3 million worth of the second type of paper, or 46.6 percent.

Indonesia, which is among the top 10 pulp and paper producers in the world, has been dealt with recurrent dumping allegations as local manufacturers can make the products efficiently and at comparatively low cost, partly supported by the tropical climate that considerably reduces the life-cycle of trees.

Industrial forest concessions in the country can generate materials to make paper within four years, lower than other paper producing countries.

Generating around 8 million tons of pulp and paper each year, the country can produce paper at only $200 per ton, according to a figure released by the Indonesian Pulp and Paper Association (APKI).

Last year, Thailand dropped its dumping allegations against coated paper and paper boards from Indonesia after an investigation concluded that local producers did not commit dumping.

APKI vice chairman Rusli Tan said that the Indonesian paper industry welcomed the decision of the Japanese authority and expected to boost shipment significantly to the market.

“The final decision proves that no strong base is found to accuse our domestic produces of dumping in Japan,” he told the Post. (Linda Yulisman)