Indonesia prepares safeguards after EU and UK impose 50 per cent steel tariffs
The Trade Ministry is assessing risks from higher prices, import quotas and climate rules while pursuing diplomatic channels.
Indonesia is developing measures to shield its steel industry from the effects of 50 per cent tariffs imposed by the European Union and United Kingdom, according to the Trade Ministry.
Speaking in Tangerang, Dina Kurniasari, the ministry’s Director of World Trade Organization (WTO) Negotiations, said policy changes covering tariffs, quotas and decarbonisation threatened Indonesian exports. She said the ministry was making preparations for worst-case scenarios.
The ministry’s Trade Policy Agency (BKPerdag) assessed that the immediate risk was a loss of price competitiveness as tariffs made Indonesian steel more expensive in the two markets. Its assessment also identified potential barriers from restrictive import quotas and tougher climate policies, including the EU’s Carbon Border Adjustment Mechanism (CBAM).
Dina said trading partners were increasingly using trade remedies to support their industries, tackle excess global production capacity and fulfil climate commitments. Indonesia would use diplomatic channels to press for transparency and non-discrimination in international trade rules, she said. Although WTO members can revise bound tariffs, she stressed that they must observe multilateral rules and trading partners’ rights.
Indonesia is also expanding steelmaking capacity. Ismail Mandry, vice chairman of the Indonesian Iron and Steel Industry Association (IISIA), said its membership comprised 189 companies with combined production capacity of 18 million tons a year.
