Indonesian industry calls for protection of steel industry from Chinese imports

With the recent news of massive steel imports from China overshadowing the domestic steel industry, the industry is hoping that the government will protect the country's steel industry from suffering the same fate as the textile industry, which has been hit hard by the invasion of imported products.The director of the Center for Industry, Trade and Investment at the Institute for Economic and Financial Development (Indef) assessed that the downturn in the performance of China's steel sector does provide an opportunity for the country to expand its exports to various countries, including in Indonesia at very cheap prices or through dumping practices. Due to the oversupply, they will of course export their production directly abroad, and Indonesia is a market with potential for penetration. Therefore government protection of domestic steel is urgent, otherwise the Indonesian steel industry may go bankrupt due to the onslaught of imported steel. Other countries have also taken protective measures to protect the domestic steel industry, with the US, EU and Canada having imposed anti-dumping duties (BMAD) and high tariffs on Chinese steel products. The countries have provided many trade remedies, while Indonesia's protection measures remain minimal. He hoped that the Indonesian government would do the same, for example in the form of safeguard measures or implementation of BMAD to protect the domestic steel industry. The government could also push for other certifications, as allowing large imports of steel would not only put the domestic steel industry out of business, but also bring the threat of mass employee layoffs. Other industries will also be affected, for example, steel dealers will definitely be affected and other related industries will also be affected, which will create a big domino effect. Production could grow positively, thus encouraging investors to enter the sector.

Indonesian steel does want to be protected by the government and one of them is PT Gunung Raja Paksi Tbk (GGRP) or GRP.The president director of GRP said that the steel industry is the pillar of development and therefore the government should seriously protect it by implementing several trade remedies. They believe that the review or extension process of anti-dumping is very lengthy and fear that the steel industry will suffer the same devastation as the textile industry. Referring to a Bloomberg report some time ago, it was stated that nearly three-quarters of China's steel producers incurred losses in the first half of 2024. Large producers such as Xinjiang Bayi Iron and Steel, Gansu Jiu Steel, and Anyang Iron and Steel went bankrupt as a result of falling domestic demand. In order to survive, these steel producers have chosen to increase exports, including to Indonesia, which may increase the risk of dumping practices.