Apart From The Dumping Allegation, Indonesia Is Ready To Reclaim Pakistan's Paper Market

JAKARTA - Indonesia is preparing to retake the dominance of Pakistan's paper market which has been hampered since 2018.

This optimism is in line with Indonesia's managed to be free from accusations of dumping.

For your information, the Lahore High Court (LHC), Pakistan decided to permanently cancel the Indonesian paper antidumping import duty (BMAD) policy in November 2024.

This decision is a turning point for Indonesian paper producers and exporters to push exports back to Pakistan.

Minister of Trade Budi Santoso revealed that this success could not be separated from the efforts of the Ministry of Trade through the Directorate of Trade Security (DPP) and business actors who have cooperated in defending.

Furthermore, Budi said the defense efforts were carried out from the initiation of the initial investigation in 2016 to a review (sunset review), including through sending a defense and consultation submission with the Pakistani investigator authorities.

The permanent cancellation of Indonesia's paper BMAD by the Lahore High Court is a turning point that provides fresh air for Indonesian paper producers and exporters. With the abolition of BMAD, Indonesia has a golden opportunity to regain control of the Pakistan paper market," Budi said in an official statement, Monday, March 17.

Since 2015, continued Budi, Indonesia is the main supplier of paper in Pakistan with a share of 70.5 percent, much higher than China which was recorded at only 7.7 percent.

However, from 2017 to 2018, Budi continued, Indonesia faced trade challenges in the form of dumping accusations by Pakistan against paper products (uncoupled writing and printing paper) with the codes HS 480255, 480256, and 480257.

Responding to the allegations, the Pakistan National Tariff Commission (NTC) implemented BMAD for five years valid from March 30, 2018 to March 30, 2023. NTC attempted to extend the import duties in November 2023, but it was canceled by the LHC in November 2024.

The applicable policy had an impact on Indonesia's paper exports to Pakistan. Initially, it reached 57.3 million US dollars in 2018, then experienced an adjustment to 32.4 million US dollars in 2021. However, in 2022, Indonesia's paper exports to Pakistan rose again by rising to 49.1 million US dollars," explained Budi.

Furthermore, Budi explained, even though it had fluctuated, the Indonesian paper industry still had great potential to bounce back and reclaim Pakistan's market.

With growing demand, Pakistan's paper imports from the world have an average growth of 7.1 percent per year from 2019 to 2023.

"If maximized with the right strategy, Indonesia's paper exports to Pakistan have the potential to grow significantly to reach US$61.3 million by 2030. This is a positive step for Indonesia to strengthen its competitiveness and become the main supplier of paper in the Pakistan market," said Budi.