Posted by: mel | November 24, 2009

‘Dumped’ Chinese Cement Seized by Indonesian Trade Ministry

Jakarta Globe | Dian Ariffahmi | 24 November 2009

The Trade Ministry on Monday said it had seized more than 1,000 tons of illegally imported cement that was part of a much larger shipment of Chinese-made cement being sold at well below market prices. 

Inayat Iman, the ministry’s director for the control of goods and services, said the cement had been seized from two warehouses — at Tanjung Priok port in North Jakarta and in Serang, Banten. Documents were found indicating that the cement was part of a shipment of 15,000 tons, he said. 

The cement was made by China United Cement Rizhao, based in Shandong province, and imported by domestic companies PT Trans Bintang Asia and PT Bada Nusantara, Inayat said. 

It had not met mandatory Indonesian national standards (SNI) for quality, he said. SNI labeling on many products is voluntary, but it is required on cement to ensure safety standards. The ministry estimated the worth of the seized cement at Rp 15.9 billion ($1.66 million). 

“We also found that these products were being sold below the average market price,” Inayat said. 

The Trade Ministry had no information about Trans Bintang or Bada Nusantara, but said the companies were advertising the cement at below market prices on the Internet. 

Urip Trimuryono, chairman of the Indonesian Cement Association (ASI), accused the Chinese cement company of dumping the cement at prices of Rp 25,000 to Rp 30,000 per 50 kilogram sack, about half of the average domestic price. 

Inayat said those responsible for importing the cement faced maximum penalties of five years in jail and fines of Rp 2 billion. 

“There will be a month of laboratory tests to identify the product and determine its quality,” Inayat said. “Once the evidence has been compiled, we plan to charge individuals at the companies concerned.”

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