Indonesian Industry Reacts to Anti-Dumping Tariffs on Chinese Ceramic Imports

Indonesia has officially imposed an additional import duty of Anti-Dumping Import Duty (BMAD) on ceramic tile products imported from China, a policy that was decided by the Minister of Finance, who issued Finance Ministry Regulation (PMK) No. 70 of 2024 on the Imposition of Anti-Dumping Import Duty on Ceramic Tile Products Imported from China.The PMK was signed by the Minister of Finance on October 9, 2024 and came into effect 10 days after its promulgation on October 14, 2024, October 24, 2024 to be exact, and the PMK is valid for 5 years. The General Chairman of the Indonesian Ceramic Industry Association (ASAKI) said that the emergence of BMAD would be the beginning of the revival of the country's ceramic industry, which has been severely damaged by dumping practices in the last 10 years and has led to the shutdown of many factories, reducing the utilization rate of the country's ceramic products. Meanwhile, the BMAD has not reached the 100% that was predicted a few months ago. asaki remains positive despite setting a BMAD percentage of only around 35% to 50%, which is still below the amount of more than 100% that Asaki had hoped to be able to reach as in the case of other countries such as Mexico and the United States. The hope of the business participants now is to extend the guaranteed import tariff so that it can come into effect on time in November to fulfill the BMAD percentage.

Tightening Chinese ceramic imports will immediately restore the current national ceramic production utilization rate of 63% and raise it to the level of 67-68% by the end of 2024, and companies have set the goal to reach a national production utilization rate of 80% by 2025 and 90% by 2026. In terms of installed capacity, the Indonesian ceramics industry ranks fourth among the world's ceramics producers, i.e., 675 million square meters/year, which is lower than China, India, and Brazil. However, in terms of actual production capacity it is only ranked 8th in the world.ASAKI aims to be among the top 5 manufacturing countries in the ceramics world by 2025. The Minister of Finance Regulation (PMK) No. 70 of 2024 provides for the imposition of anti-dumping import duties on imports of ceramic tile products from China. The imposition of import duties is based on the results of an investigation conducted by Indonesia's anti-dumping commission, which showed evidence of dumping on imports of ceramic tile products originating in China. This caused losses to the domestic industry and a causal link was found between the dumping and the losses suffered by the domestic industry. The imposition of anti-dumping import duties on ceramic tile products originating in China under tariff lines 6907.21.24, 6907.21.91, 6907.21.92, 6907.21.93, 6907.21.94, 6907.22.91, 6907.22.92, 6907.22, 6907.22.94, 6907.40.91 and 6907.40.92 products are subject to anti-dumping import duties. In an annex to the regulation, 32 Chinese companies were also identified as being subject to BMAD, with tariffs varying from a minimum of 13,446 dong per square meter to a maximum of 94,544 dong per square meter.