TEMPO.CO, Jakarta – The Indonesian Trade Security Committee (KKPPI) is summoning steel producers and importers to attend a hearing this morning. KPPI chairwoman, Ernawati, said the committee will ask the importers and producers to explain about the skyrocketing number of steel imports as reported by PT Gunung Garuda on January 15.

As a national steel producer, Gunung Garuda asked KPPI to investigate the surge in imports of alloy steel products bearing the I and H Section code, with the product number Harmonized System (HS) 7228.70.10.00 and 7228.70.90.00.

The invasion of imported steel has incurred a loss to Gunung Garuda, the company claimed. Based on data from the Central Statistics Agency (BPS), the volume of imported steel skyrocketed from 14.45 million tons in 2009 to 348.47 million tons in 2012. In 2013, the volume of steel imports shot to 243.93 million tons.

KPPI finally began investigating the imports surge on February 12, 2014.

In addition to Gunung Garuda's complaints, KKPPI also investigated surge in imports of several types of iron and steel products since January 17, 2014.

As quoted from Antara, executive director of the Indonesian Iron and Steel Industry Association, Hidayat Triseputrom, said that the low-priced steel imports fromChina invaded the country, giving pressure to the national iron and steel industry. In addition, the government's plan to raise electricity rates for industrial consumers in May 2014 has raised fears that the national steel industry's performance will become increasingly worse.

PINGIT ARIA