Indonesian paper makers freed from Thai dumping accusation

JAKARTA, Aug 14 (Bernama) -- Indonesian paper manufacturers have been found not guilty of a dumping allegation by Thailand, restoring Thai buyers' confidence to buy Indonesian products again, China's Xinhua news agency reported, citing a local media report on Tuesday.

The decision will allow the paper makers to get back their grounds in the market after they were freed of the accusation made last year.

Ernawati, trade defence director at the Trade Ministry, said that that five Indonesian producers of coated paper and paper boards, all under major paper maker Sinar Mas Group, would not be charged with anti-dumping duty, a move that would boost Thai buyers' confidence to purchase the products from Indonesia again.

As stipulated by the rules of the World Trade Organisation (WTO), anti-dumping duties can be collected by a country against imports of goods from other countries to counter impacts of dumping. 

"As the dumping allegation on Indonesian coated paper and paper board has been removed, the government expects exports of the two products to rebound to the level before 2011," Ernawati was quoted by the local news as saying.

Although Thailand has yet to determine a margin dumping or impose an anti-dumping duty, exports of the two items had dropped following the allegation.     

"Buyers in Thailand stopped making new orders from Indonesian manufacturers fearing that the duty could be effective soon," Ernawati added.

Before the allegations emerged, Indonesian exports of coated paper and paperboard to Thailand had shown significant growth.

Exports, which settled at 47,113 tonnes in 2008, rose by 15.07 per cent to 62,187 tonnes in 2009, and by 10.03 per cent to 68,426 tonnes in 2010, according to statistics at the Trade Ministry.     

But exports fell by 32.56 per cent to 46,145 tonnes in 2011 when the allegation was lodged.

Indonesia, currently the ninth-largest pulp and paper producer in the world, has faced recurrent dumping allegations overseas as local industry can manufacture the products efficiently, partly attributed to its tropical climate that helps shorten lifecycle of trees.

Generating around eight million tonnes of pulp and paper annually, Indonesia can make paper at the lowest production cost of roughly US$200 per tonne, according to an estimate by the Indonesian Pulp and Paper Association (APKI).

Source: MOLE