Antara News·Indonesia·Friday, October 16, 2026 at 01:54 PM UTC

Indonesia readies contingency measures against EU and UK steel tariffs

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Ahmad Muzdaffar Fauzan, Yashinta Difa

The most immediate concern is reduced price competitiveness for Indonesian steel products in EU and UK markets..

Jakarta (ANTARA) - Indonesia’s Trade Ministry is preparing contingency measures to mitigate the impact of 50 percent steel tariffs recently imposed by the European Union (EU) and the United Kingdom (UK) on Indonesian steel exports.

The ministry’s Director of World Trade Organization (WTO) Negotiations, Dina Kurniasari, said shifting trade policies among partner countries—including tariff changes, quota systems, and decarbonization requirements—pose direct risks to Indonesia’s export performance.

“These tariff changes certainly have implications for market access and the competitiveness of Indonesian steel products,” Dina said in Tangerang on Friday.

She noted that Indonesia’s trading partners have increasingly adopted trade remedy measures to protect domestic industries, address global production overcapacity, and meet climate commitments.

While the WTO framework allows member states to modify their bound tariffs, Dina stressed that such adjustments must comply with multilateral trade rules and respect the rights of trading partners.

An analysis by the ministry’s Trade Policy Agency (BKPerdag) identified three main risks facing Indonesia’s steel industry.

The most immediate concern is reduced price competitiveness for Indonesian steel products in EU and UK markets as tariffs drive up prices.

Market access could also be constrained by strict import quotas and increasingly stringent climate policies, including the EU’s Carbon Border Adjustment Mechanism (CBAM).

Together, these pricing and regulatory challenges are increasing uncertainty in global trade, underscoring the need for Indonesian steel producers to adopt risk-mitigation strategies.

Dina emphasized that Indonesia remains committed to promoting transparent and non-discriminatory international trade rules through diplomatic channels. At the same time, she said, the ministry is preparing for worst-case scenarios to protect the domestic industry.

The tariff increases come as Indonesia continues to expand its domestic steel production capacity.

Indonesian Iron and Steel Industry Association (IISIA) Vice Chairman Ismail Mandry said the association’s 189 member companies have a combined annual production capacity of 18 million tons.

Meanwhile, national steel imports for the 2024–2025 period are projected to reach approximately 8 million tons annually, with imports totaling 7 million tons as of August.

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