Tyre producers in Indonesia
were optimistic that mandatory implementation of the Indonesia Standard of
Quality Certification [SNI] for vehicle tyres would strengthen competitiveness
of national tyres when AEC was effective in 2015. As known, the Ministry of Industry
had set deadline for tyre producers to immediately obtain SNI certificate not
later than February 2015. The policy was written in the Regulation of the
Ministry of Industry No 68/2014 effective as per August 11 2014 on the
application of SNI for tyres.
The regulation stated that tyres could still be produced
with reference to SNI 2002 not later than 8th week of 2015. This
rule applied to substitute tyre or Original Equipment Manufacture [OEM]. Tyre
producers represented by the Association of Indonesia Tyre Producers [APBI]
rated Permenperin No.68/2014 was more stringent compared to the previous
regulations. The regulation helped to strengthen Indonesia made tyres in AEC
2015. “We are optimistic that this policy would strengthen Indonesia’s competitiveness
in Asean market, Azis Pane, Chairman of APBI stated on Monday [22/9].
Azis believed that Permenperin No. 58/2014 could protect
domestic tyres if implemented seriously. All foreign products interning Indonesia
must meet SNI standard of qualification which was different from the standard
abroad. Azis stated that imported goods without SNI were forbidden to enter
Indonesia. Uncertified products already entered must be deported or destroyed.
Azis saw that smuggled cars had stormed the domestic
market in the past few years. The number came to 50% of total tyres circulating
in the market. A condition as such was unfair to domestic tyre industry,
because consumers tend to buy smuggled goods which were 15% cheaper. In this
case Indonesian tyre producers as members of APBI urged the Government to
implement Safeguard to wall out illegal tyres.
Azis said that illegal tyres were freely circulated in
Sumatra, Kalimantan and Sulawesi which were areas easily penetrated by smuggled
goods. He was expecting that the Ministry of Trade and the Customs Dept,
Ministry of Finance tightened control over traffic of goods. The smuggler’s
modus of operandi was falsifying customs documents. Legal tyres were mostly
from India and China, they even bore SNI logo to device consumers.
Data of the Ministry of Industry 2013 had it that total
value of imported tyres came to USD 24.31 million; tyres for agricultural and
forestry tyres USD 9.18 million and import of other tyres USD 518.57 million.
soaring import of illegal tyres happened since the USA stopped Generalized
System of Preference [GSP]. The moment the Regulation was applied tyre
producers from India and China threw their excess of production to Indonesia.
Meanwhile on the export side APBI noted that through January-May
2014 sales of auto tyres was posted at 19.46 million units, down by 1.42%
against same period in 2013. Azis saw that national tyre market in 2014 was
losing steam and triggered loss. Sales of tyres sank deep as world’s rubber
price dropped. Upon entering Semester II-2014, Azis predicted that national
trye industry would have to face hard challenges at home and abroad. (SS)
Business News - September 26, 2014
No comments:
Post a Comment