Indonesia’s Anti-Dumping Committee (KADI) has begun a sunset review of Chinese steel imports, focusing on hot rolled coil alloy (HRC alloy). The investigation will run for 12 months under Government Regulation No. 34/2011. It follows a petition by PT Krakatau Posco, supported by four other domestic steel producers. Imports of HRC alloy from China remain significant despite anti-dumping duties imposed in 2022. The review will determine whether continued measures are necessary to protect local industry.
Key Facts & Background
- Investigation Period: 12 months, starting April 2026.
- Product Scope: Hot rolled coil of other alloy (HS ex 7225.30.90, BTKI 2022).
- Petitioners: PT Krakatau Posco, supported by PT Krakatau Steel Tbk, PT Gunung Raja Paksi, PT Lautan Baja Indonesia, and PT New Asia Internasional.
- Existing Duties: Anti-dumping duties imposed since 2022 under PMK No. 15/PMK.010/2022.
- Import Volumes:
- July 2023–June 2024: 231,026 tons total HRC alloy imports.
- July 2024–June 2025: 212,130 tons, a decline of 8.2%.
- Share from China: 46,667 tons (22%) in the latest period.
- Domestic Impact: KADI found evidence of continued injury to local industry despite duties.
Note: Multi-source AI data analytics, with the possibility of inaccuracies.
Insights
The investigation underscores Indonesia’s ongoing struggle to balance trade liberalization with protection of domestic industries. Despite anti-dumping duties since 2022, imports from China remain substantial, suggesting that existing measures may not fully deter dumping practices. The decline in total imports indicates some effect of tariffs, but the persistence of injury to local producers highlights structural vulnerabilities in Indonesia’s steel sector. For policymakers, the review is critical in determining whether to extend or adjust duties to safeguard competitiveness.
From a broader perspective, the case reflects Indonesia’s reliance on imported steel inputs and the challenges of building self-sufficiency in strategic industries. While anti-dumping measures can provide temporary relief, they risk raising costs for downstream industries reliant on affordable steel. The implications extend to infrastructure and manufacturing, where higher input costs could affect competitiveness. Effective resolution will require not only trade remedies but also investment in domestic capacity, efficiency, and innovation. If managed carefully, the review could strengthen Indonesia’s industrial resilience, but without structural reforms, reliance on protective tariffs may only offer short-term stability.