Heaptalk, Jakarta — The Indonesian Trade Safeguard Committee (KPPI) began an investigation on Wednesday (09/18) into safeguard measures regarding the surge in imports of plastic tarpaulin products made from synthetic fibers, including polypropylene, polyethylene, and low-density polyethylene.
“This product has the eight-digit harmonized system (HS) codes: ex3921.90.90, ex3926.90.99, and ex6306.12.00, as per the 2022 Indonesian Customs Tariff Book (BTKI),” explained KPPI Chair Franciska Simanjuntak.
Franciska further noted that KPPI received a request from the Indonesian Olefin, Aromatic, and Plastic Industry Association (Inaplas) on Friday (08/22). The association represents domestic industries such as PT Unggul Karya Semesta and PT Politama Pakindo.
“Based on preliminary evidence from the investigation request submitted, KPPI found indications of serious injury or threat of serious injury experienced by the applicants. This serious injury or threat is evident from several indicators of declining performance in the domestic industry from 2021 to 2023,” Franciska explained.
These indicators include declines in production, domestic sales, capacity utilization, workforce numbers, and market share of the domestic industry; financial losses; and increased inventory levels.
“According to data from the Central Statistics Agency (BPS), in the last three years (2021-2023), there has been an increase in the volume of imported plastic tarps made from synthetic fibers, with a trend increase of 8.74%. In 2023, imports of these products to Indonesia reached 5,504 tons, up 15.70% from the 4,757 tons recorded in 2022. Previously, the 2022 import value also increased from 4,655 tons in 2021,” she stated.
Indonesia’s primary source of imports for these products in 2023 was China, with an import share of 61.89%, South Korea at 30.61%, and Vietnam at 7.49%. Other developing countries had an import share of less than 3% of the total imports for the same year.
“KPPI invites all interested parties to register as Interested Parties, with written submissions due no later than 15 days from the date of this announcement. This is intended to prevent the recurrence of a surge in plastic tarp imports,” concluded Franciska.