The Jakarta Post reported that as the only tinplate producer in Indonesia, Pelat Timah Nusantara (Latinusa) has supplied packaging material to an array of manufacturers, such as producers of condensed milk, biscuits, paint and batteries.
The firm’s heyday has apparently passed, however, after the domestic market was opened to foreign competitors by free trade deals with nations such as China and South Korea.
Latinusa said that sales have plummeted, claiming that it cannot compete with lower prices offered by foreign rivals. The company reported a net loss of IDR 44.28 billion in the third quarter of last year, versus IDR 13.2 billion in net profits in the same quarter of 2011.
Mr Ardhiman, the president director of Latinusa said that “We have been significantly affected by the ASEAN-Korea Free Trade Agreement put into effect in 2012 citing a 23.1% rise in imports from Korea to 37,112 tonne in the third quarter.
Korean imports comprised 38% of the nation’s overall imports last year.
Latinusa is one of many companies that have been seriously hurt by the free trade agreements signed by Indonesia. Through ASEAN, Indonesia has signed FTAs with South Korea, China, Japan, Australia and New Zealand.