Antara, Jakarta – Economists are urging the government to strengthen trade safeguard policies to protect Indonesia's plastic industry from a growing influx of cheap imported products, warning that unchecked imports could undermine investment, employment, and the competitiveness of domestic manufacturers.

Institute for Development of Economics and Finance (Indef) Executive Director Esther Sri Astuti said stronger trade protection is needed to maintain a healthy business climate and ensure the long-term sustainability of Indonesia's plastic industry.

She said the sector, from upstream petrochemicals to downstream manufacturers, is facing mounting pressure from low-priced imported products entering the domestic market.

"Strengthening trade safeguard policies is essential to ensure the domestic plastic industry can continue to grow despite increasingly intense global competition," Esther said in a statement on Friday.

She added that stronger protection would allow local manufacturers to expand production while preserving the sector's contribution to the national economy. Esther also warned that small and medium-sized enterprises (SMEs) are particularly vulnerable to cheap imports.

"Finished products entering the market at extremely low prices – some of which are suspected to be illegal or sold below production costs – are eroding the market share of local SMEs," she said.

Separately, Center of Reform on Economics (Core) Indonesia Executive Director Mohammad Faisal said the plastic industry is among the sectors requiring greater policy attention as imports of low-cost products continue to rise.

Faisal added that allegations of illegal imports should be taken seriously because they weaken the competitiveness of domestic industries.

Products entering the country without complying with trade regulations not only put additional pressure on local manufacturers but also reduce state revenue, he said.

Source: https://jakartaglobe.id/business/plastic-industry-needs-stronger-trade-safeguards-economists-sa