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Indonesia’s Anti-Dumping Duty on Chinese Ceramics

The Indonesian government has officially imposed high import duties on ceramic products from China as part of its anti-dumping measures. These duties were implemented through Minister of Finance Regulation (PMK) No. 70 of 2024, signed by Finance Minister Sri Mulyani on October 9, 2024. The regulation came into effect on October 14, 2024, and will remain valid for five years.

According to the World Trade Organization (WTO), dumping occurs when a product is sold in a foreign market at a price lower than in its domestic market. Anti-dumping duties are intended to protect local industries from market distortion and unfair competition by ensuring trade practices are balanced and fair. These measures follow WTO guidelines to ensure transparency and equity, providing a framework for countries to counteract the disruptive impact of below-market-value imports.

An investigation by Indonesia’s Anti-Dumping Committee (KADI) revealed evidence of dumping practices in Chinese ceramic imports, which caused significant disadvantages to the domestic industry. The investigation established a causal link between these imports and the losses faced by local manufacturers. Consequently, the anti-dumping duties (BMAD) have been imposed on imports of ceramic tiles from 32 Chinese companies, with rates varying between IDR 13,446 and IDR 94,544 per square meter. These duties apply to specific product classifications under tariff headings, including 6907.21.24, 6907.21.91, and others listed in the regulation.

Boosting Domestic Industry

The Indonesian Ceramic Industry Association (Asaki) has expressed optimism that this regulation will restore the national ceramic industry’s production utilization rate to 67-68% by the end of 2024, up from the current 63%. By 2025, Asaki targets an 80% utilization rate, aiming to position Indonesia among the world’s top five ceramic manufacturing countries by 2025, as recognized by Ceramic World Review. Indonesia currently ranks eighth globally in ceramic production.

The anti-dumping duties are expected to align with the new government’s housing initiative under President Prabowo Subianto, which aims to build 3 million homes annually. These projects will require significant quantities of building materials, including ceramic tiles, roofing, and sanitary ware.

Impact on Prices and Competitiveness

Before the duties, the average price of imported B1A porcelain tiles (60×60 cm) was IDR 75,000-80,000 per square meter. After the implementation of anti-dumping duties, prices for these imports are expected to rise to IDR 150,000-225,000 per square meter, making them less competitive against local products, which range from IDR 75,000-90,000 per square meter.

Anti-dumping duties provide domestic industries with critical protection against unfair competition, fostering growth and sustainability. However, these measures can also increase costs for consumers, limit supply chain flexibility, and potentially provoke retaliatory trade actions from the affected country. 

For importers,  one of the primary impacts is a significant increase in costs, and when combined with shipping, handling, and storage costs, the total landed price of these imported goods becomes substantially higher. In addition, compliance with anti-dumping regulations requires meticulous preparation, such as manufacturer certifications and proof of duty payments.

With deep expertise in customs clearance, we ensure importers achieve full compliance with Indonesian customs regulations, including anti-dumping duties, through management of documentation, declarations, and tariff calculations. We can assist in evaluating the feasibility of product strategies to remain competitive by providing alternative sourcing options, such as importing from other countries not subject to anti-dumping duties.  As a trusted partner for importers, we offer comprehensive solutions to navigate regulatory changes effectively while sustaining operational and competitive advantages.

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