Indonesian Political, Business & Finance News

Plastic Industry Boss Reveals 5-30% Dumping-Price Imports Flooding Indonesia

| Source: CNBC Translated from Indonesian | Trade
Plastic Industry Boss Reveals 5-30% Dumping-Price Imports Flooding Indonesia
Image: CNBC

Jakarta, CNBC Indonesia - The domestic plastic industry is facing pressure from both global and domestic fronts. In addition to disruptions in raw material supplies, dumping practices from other countries pose a serious threat to business sustainability.

The influx of cheap imported products is increasingly pressuring the competitiveness of the local industry. This situation is occurring amid a global oversupply that is pushing foreign producers to seek export markets.

Chairman of the Indonesian Olefin, Aromatics, and Plastics Industry Association (Inaplas), Suhat Miyarso, stated that dumping practices have been occurring over the past few years and have had a significant impact.

“The prices at which they sell to Indonesia are truly dumping prices, lower by between 5-20 percent, and some even up to 30 percent. This is very burdensome for the domestic industry,” he said during a discussion at the Industrial Journalists’ Forum (Forwin) in Jakarta on Tuesday (5/5/2026).

This issue not only affects raw material producers but also spills over to the downstream sector, which must compete with imported finished products.

Furthermore, market openness through various free trade agreements is making it easier for imported products to enter Indonesia. In such conditions, industry players consider market protection to be extremely important.

“We want policies to control imports, both of raw materials and finished goods. If finished goods can enter freely at dumping prices, this is certainly unhealthy,” he said.

Currently, Inaplas has proposed various trade remedy measures, such as anti-dumping and safeguards, to the government. The processes are underway, but not all have been fully realised.

Without strong policy interventions, industry players fear the plastic sector will suffer the same fate as other industries hit by cheap imports.

“We need legal certainty, market protection, and consistent policies. If not, every crisis will bring us back to the same point,” Suhat emphasised.

Inaplas Secretary General Fajar AD Budiyono also highlighted the real impact of dumping on the downstream industry.

“For plastic film, for example, there used to be eight industries, now only two remain because 70 percent of the market has been taken by imports. This is concrete evidence of the impact,” Fajar said on the same occasion.

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