Government asked to increase import duty of steel pipes

The association of steel pipe producers (Gapipa) has asked the government to increase import duty of steel pipes to between 30 percent and 60 percent to curb the inflow of cheap products from foreign countries, Bisnis Indonesia reported on Tuesday.

The vice chairman of the association, Abas F. Soeriawidjaya, said in Jakarta on Tuesday that the proposal would be soon discussed with the Tariff Team of the Ministry of Finance and steel pipe and other steel products producers and buyers.

The increase is needed to protect the local pipe products that have now become more vulnerable following the government?s decision to lift the anti-dumping tariffs imposed on steel pipes originating from Japan and Singapore.

"The protection is needed to protect the locally made steel pipes. If not, local producers will face a serious problem," he added.

According to him, the increase in the demand for steel pipes in the country could create opportunities for dumping activities, if the government gives no control on the inflow of imported products. (*)