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Indonesia has broadened the scope of its safeguard investigation into imports of linear low-density polyethylene (LLDPE), extending the probe to products classified under HS code 3901.40.00.

In a notification to the WTO Committee on Safeguards, the Indonesian Trade Safeguard Committee (KPPI) said the decision followed a 15 April 2025 request from the Indonesia Olefin, Aromatic, and Plastics Industry Association (INAPLAS). The association argued that domestic producers also manufacture directly competing products under this tariff line, which face similar market pressures from rising import volumes.

Industry sources noted that overseas suppliers have increasingly altered the specifications of their LLDPE cargoes in order to qualify under HS 3901.40.00. The expanded probe is intended to prevent such diversion. Analysts pointed out that this mirrors recent actions in India and Vietnam, where safeguard measures were broadened to capture comparable product categories.

The original Indonesian investigation, launched in September 2024, focused on imports under HS code 3901.10.92 after a petition from INAPLAS on behalf of PT Chandra Asri Pacific and PT Lotte Chemical Titan-Nusantara. Domestic producers claimed that a surge in imported volumes had caused or threatened serious injury to the local industry.

Indonesia imported around 210,829 tons of LLDPE in 2024, according to data compiled by CommoPlast. Supplies were primarily sourced from Malaysia, Thailand, Saudi Arabia, the US, the Philippines, and Qatar. In the same period, exports of Indonesian LLDPE collapsed to just 5,300 tons from 135,337 tons in 2023 — a 96.1% drop — which market participants attributed to producers prioritising the domestic market in anticipation of potential trade protection.

Imports under HS 3901.40.00 have shown a clear upward trend, according to data submitted by INAPLAS: 127,588 tons in July 2021–June 2022, 112,286 tons in July 2022–June 2023, and a sharp rise to 192,873 tons in July 2023–June 2024.

The safeguard case is being pursued under Government Regulation No. 34 of 2011, which governs trade remedies, including safeguards, anti-dumping, and countervailing duties. Any resulting measures could reshape tariff structures and trade flows in one of Southeast Asia’s key PE markets.

The government has yet to set a timeline for the expanded investigation.

Written: Farid Muzaffar

Country
Indonesia