Indonesia National importers’ Association (GINSI) asks the government, the related ministries in particular, to do supervision and take equal treatment in importation of steel products.
Since there was an increase in steel imports in the first semester this year (H1/2021) as released by Central Statistics Agency (BPS), GINSI Vice Chairman Erwin Taufan calls for a tight supervision and control in its process.
“GINSI asks the government to give equal treatment. National importers should be given with similar opportunities to do importation of steel as the import facilities given to big industries. On the other hand, those large ones must also be monitored,” Taufan told the press on Tuesday (14/9/2021).
He said that fair treatment for national importers needs to be carried out to ensure business sustainability in order to encourage national economic growth. “We don’t expect that some are tightly controlled, while others aren’t,” said Taufan.
Based on BPS data, steel imports in H1/2021 amounted to 6.5 million tons, an increase of 12.7% year on year (H1/2020), which was amounted to 5.8 million tons. In terms of value, imports increased by 51.6% to USD 5.3 billion, USD 3.5 billion during the period.
BPS said that the increase of imports value was mainly due to a significant increase in world steel prices since mid-2020.
While the increasing volume, according to Taufan, was also triggered by the increasing demand from the producer producers. “Majority of GINSI members also faced this increasing trend. That is why we ask for equal treatment from government,” he said.
Citing a study by Research Oriented Development Analysis Institute, Taufan said that as much as 50.6 percent of steel imports were carried out by producers who have these facilities.
The increase in imports of iron and steel was also followed by a significant increase in exports, creating a surplus of USD 1.7 billion in Indonesia’s trade balance for intermediate steel products of Post HS 7208-7229.
Even, its surplus is higher if added by the trade balance of steel derivative products of HS 73, to USD 2.7 billion, an increase of more than 1,500% form USD 177,000 in H1/2020.