ASIATODAY.ID, JAKARTA — Indonesia is facing a steel industry emergency, as the national sector struggles under intense pressure from surging steel imports, unfair trade practices, and dumping.
Chair of Commission VI of the House of Representatives, Anggia Ermarini, has called on the government to take urgent and concrete action to save one of the country’s most strategic industries.
“The steel industry is a national strategic sector—often called the mother of industry. Almost every sector in Indonesia, from construction, infrastructure, manufacturing, and energy to trade, depends on steel. Even the pharmaceutical and cosmetics industries rely on steel products,” said Anggia during a hearing between Commission VI, the Deputy Minister of Industry, the Minister of Trade, and the President Director of PT Krakatau Steel at the Parliament Complex, Senayan, Jakarta, on Monday, November 10, 2025.
Triple Crisis: Imports, Weak Trade Protection, and Uncontrolled Permits
According to Anggia, Indonesia’s domestic steel industry is in a deeply alarming condition. Based on discussions with various stakeholders, Commission VI has identified three critical issues undermining the competitiveness of the national steel sector:
1. Flood of Imports and Dumping Practices
The domestic market is overwhelmed by imported steel sold below production costs, often entering through free trade zones with HS code manipulation to evade import controls.
“Foreign steel is being dumped into Indonesia, with many shipments disguised through free trade zones. This is a clear case of unfair trade that harms our national industry,” she warned.
2. Weak and Slow Trade Protection Mechanisms
Anggia criticized the sluggish response in investigating dumping cases. “An investigation can take up to 24 months here, while in many countries it’s resolved within 60 to 90 days. Our protection policies must be faster and more effective,” she stressed.
3. Import Licensing Ignoring Domestic Capacity
She also noted that import permits are issued without considering national production capacity, leaving local steel producers unable to compete even in their own market.
“Import licensing should reflect domestic capacity—otherwise, our own industry will collapse at home,” Anggia said.
A Parliamentary Warning to the Government
The hearing, Anggia emphasized, serves as a wake-up call for the government to act decisively. She urged the implementation of stricter import controls, faster trade safeguard mechanisms, and mandatory use of local steel products in national infrastructure and strategic projects.
“We cannot allow our steel industry to fall victim to weak and delayed policy. If the steel sector collapses, the national economy will follow, because this industry is a barometer of Indonesia’s development,” Anggia concluded. (AT Network)
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