Gajah Tunggal Makes Middle East Contingency Plans

Gajah Tunggal is said to be making contingency plans to switch its Middle East export activity away from Egypt to other Middle East countries. This will be carried out if the accusation by the Egyptian government that this Indonesian tyre producer is guilty of dumping is proved.

Regarding this accusation, Chatarina Wijaya, Director of Investor Relations, said that the cheaper tyre prices are in fact due to more efficient and streamlined production. “The dumping accusation could actually be a form of Egypt’s protection for its domestic tyre industry,” she said.

The Indonesian government is now lobbying the Egyptian government in order to prevent the accusation process progressing to the investigation phase.

Gajah Tunggal’s reason for re-thinking its Middle East export strategy is that, should the dumping accusation be upheld, a stringent import duty is likely to be levied on Indonesian tyres, seriously affecting their competitiveness in the Egyptian market.