Indonesia Trade Protections Against China’s Steel Glut: A Pressing Need

Indonesia trade protections China steel glut

Indonesia’s steel industry faces a severe threat from China’s impending steel glut. Chinese steel producers are flooding global markets with cheap products.

The United States has imposed tariff hikes on Chinese steel imports. This action has diverted Chinese steel exports to other markets, including Indonesia.

Indonesia relies heavily on steel imports, with 45% of its steel coming from abroad. China is the primary source of these imports.

Vulnerabilities in Indonesia’s Steel Sector

Indonesia’s growing automotive sector and weak trade protections make it particularly susceptible. The country’s safeguards and anti-dumping measures are currently inadequate.

Local producers struggle to compete with cheap Chinese steel products in both domestic and global markets. This situation puts Indonesia’s steel industry at risk of collapse.

Indonesia trade protections China steel glut: Calls for Stronger Trade Protections

Industry leaders are urging the Indonesian government to implement additional policies. These measures aim to help national steel producers survive and compete effectively.

Other countries have already taken steps to protect their domestic markets. India plans to increase import duties, while the US has imposed significant tariffs on Chinese steel.

Proposed Measures for Indonesia

Experts suggest tightening import regulations and enforcing Indonesian National Standards (SNI). Increased supervision of SNI product compliance in the market is crucial.

Implementing a commodity balance system could help control import approvals. This approach would consider the supply capacity of Indonesia’s national steel industry.

Diversification Strategies

To reduce dependence on the Chinese steel market, Indonesia is exploring diversification strategies. The government aims to develop new downstream markets for nickel products.

The electric vehicle (EV) battery sector presents a potential opportunity. It could shift market demand and reduce reliance on China’s steel industry.

The next steps

Indonesia must act swiftly to protect its steel industry from China’s looming steel glut. Stronger trade protections and diversification strategies are essential.

Without immediate action, Indonesia risks becoming a dumping ground for cheap Chinese steel. This would severely impact local producers and the country’s economic stability.