Indonesia drops proposed anti-dumping duties on homo-PP imports from eight countries after national interest review

The government cited an enduring domestic supply deficit, mounting trade protection measures and prevailing geopolitical uncertainty in rejecting KADI's recommendation to impose anti-dumping duties.

Indonesia has decided not to impose anti-dumping duties (BMAD) on homo-PP imports from eight countries, concluding that the measure would not serve the country's national interest despite earlier findings that dumped imports had caused material injury to domestic producers.

In a notification issued on 6 August, Indonesia's Anti-Dumping Committee (KADI) informed stakeholders that the government had rejected its June recommendation to levy anti-dumping duties on homo-PP imports from Saudi Arabia, Malaysia, Singapore, Thailand, Vietnam, South Korea, China and the Philippines. The decision followed a National Interest Consideration review conducted after KADI submitted its final recommendation to the Ministry of Trade.

According to the notification (Ref. AD.02/516/KADI.01/08/2026), the government identified four key reasons for terminating the case. First, Indonesia's installed homo-PP capacity remains structurally insufficient to satisfy domestic demand, even before accounting for production efficiency, export commitments, logistics and product-specification limitations. Second, the domestic plastics industry is already operating under several trade remedy measures—including anti-dumping duties on BOPP, nylon film and biaxially oriented polyethylene (BOPE), as well as safeguard duties on expandable polystyrene (EPS)—and additional duties on a key feedstock would further raise costs for downstream manufacturers.

The government also noted that imposing BMAD would run counter to its broader policy direction of reducing import costs for industrial raw materials. While LPG imports were recently exempted from import duty under Finance Ministry Regulation No. 50/2026, authorities are separately evaluating similar tariff relief for plastic raw materials. More broadly, the government concluded that prevailing geopolitical tensions and global economic uncertainty made this an inappropriate time to introduce additional trade protection measures.

The decision brings to an end an investigation launched in December 2024 after PT Chandra Asri Pacific Tbk petitioned KADI, alleging that dumped homo-PP imports had caused material injury to Indonesia's domestic industry. PT Polytama Propindo supported the petition, while Pertamina did not participate. At the time, Indonesia consumed approximately 814,552 tonnes of homo-PP during the first half of 2024, with domestic production meeting only around 40% of demand, leaving imports from the eight investigated countries to account for a significant share of the market. 

KADI subsequently extended the investigation by up to six months in November 2025, citing the volume of submissions from interested parties under Article 9(2) of Government Regulation No. 34/2011 and Article 5.10 of the WTO Anti-Dumping Agreement. 

In its Final Investigation Report released in June 2026, KADI recommended producer-specific anti-dumping duties ranging from 0.82% to 36.62%, arguing that dumped imports had steadily expanded their market share at the expense of domestic producers, suppressed local prices and contributed to sustained financial losses. The committee also established exclusion criteria for speciality grades that domestic producers cannot manufacture, while rejecting arguments from overseas exporters that the industry's difficulties primarily reflected structural global oversupply following China's capacity expansion. 

With the government's latest decision, none of the recommended anti-dumping duties will take effect, removing a significant source of uncertainty that has weighed on procurement planning since KADI published its final findings in June. The outcome preserves existing trade flows into Indonesia, Southeast Asia's largest homo-PP import market, while sparing downstream plastic converters from higher raw material costs.

The decision, however, does not necessarily signal a broader retreat from Indonesia's trade protection agenda. Parallel anti-dumping investigations into PP block copolymer and LLDPE imports—also initiated following petitions from PT Chandra Asri Pacific Tbk—remain ongoing, leaving market participants watching closely to see whether the government applies the same national-interest test when those cases reach the final decision stage.

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