The Indonesian Ministry of Finance has announced a significant trade policy extension, continuing its anti-dumping measures against Chinese steel sections for an additional five-year period. This marks the third renewal of these protective tariffs since their initial implementation in 2010, highlighting Indonesia's ongoing commitment to safeguarding its domestic steel industry.
The measure specifically targets H-section and I-section steel products from China, maintaining the existing duty rate of 11.93%. These structural steel components, classified under HS codes 7216.32.10, 7216.32.90, 7216.33.11, and 7216.33.19, are crucial materials in construction and infrastructure development. The extension demonstrates Indonesia's persistent concerns about the potential impact of Chinese steel imports on local manufacturers.
Trade data from the first nine months of 2024 reveals significant shifts in import patterns. Indonesia's total imports of these steel sections reached 17,465 metric tons, marking a substantial 59.4% decrease compared to the same period in the previous year. Despite this overall decline in imports, China's market share actually increased from 57.6% to 64.5%, indicating the continued dominance of Chinese products in Indonesia's steel section imports.
The decision to extend these duties reflects broader trends in regional trade protection measures within the Southeast Asian steel market. Indonesia's approach aligns with similar actions taken by other countries in the region to maintain fair competition and support domestic steel production capabilities.
The impact of these extended duties is expected to influence both local manufacturing dynamics and international trade relationships. For Indonesian steel producers, the continued protection offers a degree of price stability and market share preservation. Meanwhile, Chinese exporters must navigate these trade barriers while maintaining their significant presence in the Indonesian market.
The extension of these anti-dumping duties also signals Indonesia's broader industrial policy objectives, balancing the need for affordable construction materials with the protection of domestic manufacturing capabilities. This trade measure forms part of a larger framework of industrial policies aimed at strengthening Indonesia's steel sector.
The implementation and monitoring of these duties will continue to be overseen by Indonesian customs authorities, ensuring compliance with international trade agreements while protecting domestic industry interests. This regulatory framework demonstrates Indonesia's commitment to maintaining fair trade practices while supporting local industrial development.
