Indonesia exempts Chinese synthetic fibers from anti-dumping duties

The Minister of Trade has recently decided to exempt imports of certain synthetic fiber yarns from China from anti-dumping duties, a policy based on a comprehensive consideration of the current situation of the domestic textile industry and the views of relevant stakeholders.Domestic production capacity of specific synthetic fiber yarn cannot meet the demand of the downstream industry, and most producers only produce for their own use, resulting in limited supply in the domestic market. If the anti-dumping duty continues to be imposed, it will push up the production cost of the downstream industry and weaken its competitiveness in the market.Treasury Regulation No. 46 of 2023 has imposed safeguard duty on polyester staple fibers from India, China, and Taiwan, China. The textile industry's contribution to GDP has declined from 1.31 TP3T in 2019 to 1.11 TP3T in 2024 due to the New Crown epidemic, and policy support is needed to boost production. The decision was coordinated by multiple ministries, including the Minister of Economic Coordination, the Minister of Finance, the Minister of National Development Planning, and the Minister of Industry, with input from the Supervisory Commission for Business Competition and representatives of the affected industries. The Indonesian Anti-Dumping Commission has been investigating allegations of dumping of the products in question since September 12, 2023, in response to an application by two companies represented by the Indonesian Fiber Producers Association. The products under investigation includeHS codeSynthetic fiber yarns corresponding to 5402.33.10, 5402.33.90, etc., specifically classified as pre-oriented yarns and stretchedanamorphic filament. Some textile enterprises expressed disappointment with the tax exemption policy and were concerned about fluctuations in raw material costs.