Indonesian steel producers object reduction in import duty

Indonesian steel producers object reduction in import duty

As recently reported by SteelOrbis, Indonesian government was in planning to reduce steel import duty to 0% level to be in effect as of this week. However, Indonesian steel producers are reported to be objecting to the new regulation. The Ministry of Industry and Trade was planning to reduce current 15-20% import duty on steel products to the level of 0% due to raw material shortage and rising prices, from which the producers are suffering for a long time. However, certain steel authorities believe that reduction of duties will hurt both the upstream and downstream industries, leading second-grade steel products, which are cheaper to enter into domestic market, adding that instead of reducing steel import tariff, banning exports will be more advantageous for steel producers in the country.