Indonesia launched anti-dumping investigation on homo-PP imports from eight countries

On 04 December 2024, the Indonesian Anti-Dumping Committee (KADI) launched an investigation into alleged anti-dumping practices involving homo-polypropylene (homo-PP) imports under HS code 3902.10.40 from eight countries: Saudi Arabia, the Philippines, South Korea, Malaysia, China, Singapore, Thailand, and Vietnam.

The investigation stems from a petition filed by PT Chandra Asri Pacific Tbk, claiming that dumping activities from these countries have inflicted significant harm on Indonesia’s domestic market. Preliminary data submitted to KADI suggest evidence of dumping and a direct link to financial losses in the local polypropylene industry.

Stakeholders involved in the investigation have until 17 December 2024, to respond to KADI’s questionnaire. Interestingly, Indonesia's other major PP producers, Pertamina and Polytama, have chosen not to join the petition.

Market data underscores the gravity of the issue: Indonesia consumed approximately 814,552 tons of homo-PP in the first half of 2024, with domestic production covering only 40% of demand. Imports accounted for the remaining 60%, with the accused countries ranking among Indonesia’s top 10 suppliers, highlighting their significant market influence.

In a parallel move, Indonesia has also begun investigating anti-dumping allegations on PP block copolymer and LLDPE imports, prompted by a similar petition from PT Chandra Asri Pacific Tbk. Earlier this year, the government faced strong resistance when it proposed import quotas on key petrochemical products.

The investigations signal Indonesia’s heightened scrutiny of import practices and a proactive stance in protecting its domestic petrochemical industry amid intensifying competition.

Written by: Rochelle Nguyen