The Trade Security Committee under the Indonesian Ministry of Trade has initiated an investigation as to whether “safeguard measures” would be needed in response to a sharp increase in imports of linear low density polyethylene (LLDPE).

The probe began on 9 September following a complaint from the Indonesia Olefin, Aromatics and Plastics Industry Association (INAPLAS), acting on behalf of Chandra Asri Pacific and Lotte Chemical Titan Nusantara Indonesia.

The committee noted initial findings suggested there were possible losses to the domestic industry over the years 2021-2023 arising from the sharp increase in imports of LLDPE.

It also noted that the biggest sources of these imports were Malaysia and Thailand, which accounted for over 70 per cent of LLDPE imports into Indonesia.

Government data showed that in 2023, Indonesia’s LLDPE imports increased by 33.3 per cent to 280,385 tonnes, compared with a 3.3 per cent decline registered in 2022, according to the Ministry of Trade.