Economists Urge Trade Safeguard Policies Amid Plastic Import Surge

Jakarta (ANTARA) - Executive Director of the Institute for Development of Economics and Finance (INDEF) Esther Sri Astuti is urging the government to strengthen trade safeguard policies to maintain the competitiveness of the national plastic industry amidst increasing pressure from cheap imported products. This step is considered important to create a healthy business climate while safeguarding investment sustainability and employment in the plastic sector. In a statement confirmed in Jakarta on Thursday, Esther said strengthening trade safeguard policies is necessary so that the domestic plastic industry can continue to thrive in the face of increasingly tight global competition. According to her, pressure on the national plastic industry is already visible, particularly in the upstream and downstream petrochemical sectors, due to the rising flow of cheap imports from several countries. She assessed that strengthening domestic industry protection is an essential part of ensuring the national plastic sector still has room to grow, increase production, and maintain its contribution to the economy. Esther also highlighted the need for attention to the sustainability of small and medium enterprises (SMEs) so they can compete with imported products entering at very low prices. “Finished products from abroad that enter at very low prices, even suspected of being illegal or sold below production costs, are killing the market share of local SMEs,” she added. Meanwhile, Executive Director of the Center of Reform on Economics (CORE) Indonesia Mohammad Faisal assessed that the plastic industry is one of the sectors requiring attention in facing the surge of cheap imports. Faisal added that the increase in suspected illegal imports needs to be a shared concern as it can affect the competitiveness of domestic industries. According to him, products entering without fulfilling trade obligations can put pressure on domestic producers and state revenue.