Paper Exports of Indonesia Fall on US & Aussie Anti-Dumping Duty
(Djakarta, Indonesia, January 09, 2017) Indonesian paper manufacturers may see their exports fall further in 2017 as Australia and the United States have implemented high anti-dumping import duties on paper from Indonesia. Liana Bratasida, Executive Director Indonesia Pulp & Paper Association (APKI), said several local paper manufacturers stopped shipments to Australia after the country implemented anti-dumping import duties in the range of 2.4 – 72.8 percent in December 2016. Reportedly, it has become not feasible for these companies to continue the export of paper.
Indonesian paper producers that continue paper exports to Australia are primarily those companies that need to comply with contracts that were signed before the implementation of the anti-dumping import duties in early December 2016.
However, the final decision of Australian authorities with regard to the anti-dumping import duties will be issued on 23 January 2017. However, few expect this decision to differ significantly from the decision that was made in December 2016.
Bratasida added that paper exports from Indonesia to the USA have also ceased after punitive tariffs were imposed in the USA on coated paper imports from both Indonesia and China. These tariffs were implemented after allegations surfaced of dumping in February 2016.
Data from Indonesia’s Trade Ministry show that the nation’s paper exports have fallen 5 percent year-on-year (y/y) to USD $2,844 million in the January-October 2016 period. This is consistent with the bigger trend: since 2011 Indonesian paper exports have been on the decline.
The Indonesian government is advised to conduct a lobby campaign in the USA and Australia to defend its paper exporters and boost the competitiveness of Indonesian paper exports. Thailand, South Korea and Japan also once imposed anti-dumping tariffs on paper from Indonesia but revoked these duties after Indonesian authorities conducted a successful lobby.
Together with palm oil players, Indonesia’s paper and pulp manufacturers are believed to be responsible for deforestation and the usage of unfriendly environmental practices in Indonesia.
Last month, Greenpeace and WWF suspend its partnership with Riau Andalan Pulp and Paper (Rapp), one of Indonesia’s biggest pulp and paper companies and which is a subsidiary of Asia Pacific Resources International Limited (April), after a peatland drainage canal was discovered. This is a problem because drainage canals dry out peatland, release carbon emissions and create the “right” conditions for forest fires. (Source: Indonesia Investments press release)