Chinese Steel Dominates 55% of Domestic Market as Local Manufacturers Voice Concerns

Jakarta – Excess production from China flooding the global steel market, including Indonesia, has become a significant challenge for Indonesia’s domestic steel industry.

Handaja Susanto, President Director of PT Saranacentral Bajatama Tbk (BAJA), stated that the US-China trade war has obstructed the flow of Chinese steel to the United States, with the consequence that South-East Asia, including Indonesia, has become a dumping ground for excess supply. Approximately 55% of the steel circulating in Indonesia originates from China.

Subsidies provided by the Chinese government enable Chinese steel products to be offered at significantly lower prices. As a result, local and export markets for steel products from other nations, including Indonesia, have become increasingly uncompetitive.

The local industry is urging the government to take serious action against the influx of Chinese steel, including the enforcement of Indonesian National Standards (SNI) regulations, as many Chinese steel products fail to meet SNI requirements. Additionally, manufacturers are calling for the implementation of anti-dumping and safeguard measures to protect domestic products.

The dialogue between CNBC Indonesia’s Bunga Cinka and Handaja Susanto, President Director of PT Saranacentral Bajatama Tbk (BAJA), featured in Manufacture Check on CNBC Indonesia, provided further insight into the pressures faced by Indonesia’s steel industry.