Indonesian firms worried about import fallout from US policy

Jakarta (VNA) – Indonesian steel corporations have voiced their concern over the US’s new steel and aluminum import policy, which can make the Southeast Asian nation flooded with an influx of steel products from other countries.

Director of the Krakatau steel company Purwono Widodo said that although the firm does not export steel products to the US, the American country’s plan to impose 25 percent tariffs on steel imports and 10 percent tariffs on aluminum imports may cause knock-on effect on the global market.

He has been worried about the entry of made-in-China steel products into the Indonesian market, especially when they are prevented from entering the US market. Other Southeast Asian nations may be affected as well.

Domestic steel products will experience unfair competitive edge with those from China if the export tax-free China steel floods the market, he added.

He hoped that the Indonesian Government will introduce measures to protect local steel industry such as ratifying regulations on the use of local products or local content requirements for steel products.

Earlier, the Indonesia National Standard (SNI) on steel imports has taken effect in the country. Also, it applied Decision No 82 to reduce steel imports to the country from the outset of 2017.

US President Donald Trump will announce his decision on the heavy tariffs imposed on imported steel and aluminum products this week. Earlier, his government slapped steep tariffs on imported solar panels and washing machines.-VNA