Why Cheap Imported Goods Flooding Indonesia are Dangerous, Causing Structural Damage

The Chairman of the Indonesian Anti-Dumping Committee (KADI), Frida Adiati, has emphasised that concerns regarding the impact of imports on domestic industry should not be measured solely by the total value of imported products, but rather by the potential structural impact on the competitiveness and sustainability of local industries.

“All cases have an impact on domestic industry, particularly regarding losses incurred, investment, labour, and other related factors,” Frida told CNBC Indonesia on Friday (4/9/2026).

According to her, during the investigation process, KADI found indications that import prices from certain countries are at an unnatural level when compared to the prices of products sold in the domestic market of the accused country. This condition is deemed to have the potential to exert pressure on the prices of domestic products. If this pressure continues, the impact could spread to various aspects of domestic industrial performance.

Frida noted that such pressure could lead to a decline in sales volume and domestic market share. Furthermore, production capacity utilisation and corporate profitability are also at risk of being suppressed.

“This condition can impact domestic industry, for example, through a decrease in sales volume, domestic market share, production capacity utilisation, profitability, and even the very survival of the domestic industry,” she said.

Frida emphasised that these indications still require further analysis. KADI needs to conduct field verifications, involving both domestic industries and exporters, throughout the investigation process.

The evidence gathered by KADI includes determining the existence of dumping practices, the losses suffered by domestic industries, and the causal link between suspected dumping imports and those losses.

Therefore, Frida stressed that the most critical cases are not merely those with the highest import values. KADI also assesses how much potential a case has to disrupt the structure and the ability of domestic industries to survive and compete.

“Thus, the most important cases are not solely those with the largest import value, but also those with the potential for structural impact on the competitiveness and sustainability of domestic industry,” she asserted.

If investigations prove the existence of dumping elements that simultaneously cause losses to domestic industry, KADI’s findings can serve as a basis for the government to consider implementing trade remedies.

“If it is proven to meet the elements of dumping and causes injury, KADI’s investigation results can be the basis for the government to consider implementing trade measures, such as Anti-Dumping Duties and Countervailing Duties. This will create fairer competition for domestic industry,” she concluded.