Source: Kompas.com | October 21, 2025

The national steel industry is facing pressure due to the zero percent import duty policy on finished steel construction products from China and Vietnam.

The Indonesian Society of Steel Construction (ISSC) believes this policy is hurting local fabricators and threatening the sustainability of the national strategic steel industry.

“This ISSC warning confirms that the zero percent import duty policy on imported steel construction products is not just an economic issue, but also affects the resilience and sovereignty of the national industry,” ISSC Chairman Budi Harta Winata said in a statement in Jakarta on Tuesday (October 21, 2025).

The ISSC is urging the government to take five concrete steps to protect the national steel industry.

First, refuse to issue Building Construction Permits (IMB) for buildings constructed using imported steel construction, as the raw materials do not meet SNI and TKDN standards.

Second, refuse to issue SNI labels for products produced or manufactured by factories using imported steel construction.

Third, stop issuing new foreign investment permits for steel construction products and their supply chains. Fourth, stop issuing steel construction import approval letters.

Fifth, tighten supervision of imported steel construction with HS Code 9406.XX and 7308.XX by the Directorate General of Customs and Excise.

According to Budi, the root of the problem is a structural imbalance in international trade caused by zero percent import duties, which create unfair competition.

Budi said the imposition of zero percent import duties on finished steel construction products, such as steel roof trusses and other steel structures, creates severe market distortions, causing domestic welders to lose their jobs.

“This is like asking a local boxer to fight without gloves against a fully equipped world-class boxer. The price of imported finished products is 20-40 percent cheaper due to their thin design, while domestic fabricators must comply with the Indonesian National Standard (SNI) earthquake design standards,” he said.

Local fabricators, Budi said, are now in a precarious position because the finished product market is dominated by cheap imported steel. Many welding workshops and small- and medium-scale fabrication plants are reducing production and even being forced to close down.

“If local fabricators die, who will buy raw materials from local companies? Policies that should support industry actually indirectly harm the local companies they should protect,” continued Budi Harta Winata.

The ISSC is pushing for solutions in the form of revising import duty policies, implementing strict anti-dumping and safeguard duties on products proven to engage in unfair trade practices, strengthening local content (TKDN), and supporting local steel companies.

Budi urged the government to consistently implement TKDN regulations and provide strategic support to local steel companies to become more efficient and competitive.

“We demand fair policies, not excessive protection. We must not let this strategic industry, the backbone of development, die because of policies that actually kill it,” he said.