TEMPO.CO, Jakarta - Deputy Minister of Industry Faisol Riza confirmed that the government will implement antidumping or safeguard policies at border areas to prevent an influx of imported goods from China.
"The government will enforce this so that these goods do not enter and disrupt the domestic market," Faisol told reporters after a working meeting with Commission VII of the House of Representatives on Wednesday, July 2, 2025.
Faisol explained that China may redirect its exports to Indonesia due to restricted access to the United States, a consequence of the ongoing trade war.
He noted that recent tariff negotiations in Geneva, Switzerland, led to the U.S. imposing a 30 percent tariff on Chinese goods, while China responded with a 10 percent tariff on American products.
Without protective measures, Faisol warned that Chinese imports could displace locally manufactured goods. He pointed to a 0.5 percent drop in Indonesia’s Purchasing Managers’ Index (PMI) in June 2025 as an indicator of market pressure.
“The manufacturing sector is still in a contraction phase,” he said.
Faisol attributed the contraction to weak demand from new export markets, negative global sentiment, trade policy uncertainty, and ongoing political tensions.
He reported that imports of textiles and textile products rose by 8.84 percent between January and April 2025, while footwear imports surged by 30.89 percent over the same period.
In addition to affecting the manufacturing sector, Faisol warned that China may also divert its steel and aluminum exports to Indonesia. He described the situation as increasingly concerning due to Indonesia's heavy reliance on steel and aluminum imports from China.
He stated that steel imports from China account for 51.41 percent of Indonesia’s total steel imports, with a value of approximately US$2.17 billion. Aluminum imports from China reached 46.10 percent, valued at around US$1 billion.
“We must respond by closely monitoring the inflow of steel and aluminum at our borders,” he said.
These efforts, he explained, are intended to enable a swift response to any abnormal spikes in imports by applying antidumping duties or safeguard measures to protect local industries.
Faisol also addressed broader geopolitical risks that could impact the national industry. He cited the ongoing conflict between Israel and Iran, warning that the potential closure of the Strait of Hormuz (through which about 20 million barrels of oil pass daily) could disrupt Indonesia’s energy supply.
He emphasized that energy plays a critical role in industrial production. A disruption, he said, would endanger the sustainability of several key sectors, particularly labor-intensive industries such as textiles, electronics, and automotive components, all of which are currently facing declining export demand
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