Indonesia: New regulation to protect domestic steel industry

In a move stimulate more growth in its domestic steel sector, the Indonesian government has issued a regulation requiring steel manufacturers and importers to register with the Ministry of Industry of Trade. This is part of what could be a larger “Buy Indonesian” trend, after a recent government order required civil servants to buy local-made products. Officials deny the policy is protectionist, but director general of the steel sector at the industry ministry, Ansari Bukhari, has argued that an over-dependence on foreign imported raw materials has caused Indonesia’s steel industry to lag behind. According to reports, local property developers and other consumers said they prefered cheaper and better quality imported steel, a reality that has resulted in imported raw materials being purchased in U.S. dollars and later sold in Indonesian currency, the rupiah.

Imported steel products such as hot-rolled coil and plate, wire rod, cold-rolled coil and coated steel products will now be subject to new regulations.

“Buy Indonesian” policy, Straits Times

Indonesia clamps down on steel import to protect local market, Reuters/Forbes

New trade regulation on steel to protect RI steel, Jakarta Post