Paper Imports From China Soar, Even Though Domestic Production Is Sufficient

JAKARTA - Paper Imports from China jumped this year, even though domestic production is considered sufficient to meet domestic needs.

Based on data from the Ministry of Industry (Kemenperin), imports of pulp and paper in the 2025 I-finals reached 1.69 billion US dollars.

This figure is an increase compared to the same period last year of USD 1.53 billion.

Acting (Plt) Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika said the pulp and domestic paper industry is facing a number of challenges.

First, the implementation of a standard quality control order that limits imports from entering India. Second, imports of paper products from China increased.

Third, the high price of gas as one of the industrial energy sources. Fourth, the availability of industrial auxiliary materials, such as industrial salt.

"If we look at the imports of 3.2 billion US dollars (2023), it will increase to 3.4 billion US dollars (2024) and in 2025 to around 3.6 billion US dollars. Well, we are really looking at this, because almost all paper can be produced domestically. However, imports are still very high at 3 billion US dollars," said Putu at a Hearing Meeting (RDP) with Commission VII DPR RI and the Directorate General of Industry Agro Ministry of Industry (Kemenperin) at the Parliament Complex, Senayan, Jakarta, Tuesday, November 11.

Putu explained, imports of paper products from China continue to increase, especially the ivory and duplex papers used for packaging. In addition, the domestic pulp and paper industry is also facing challenges in terms of raw materials.

According to him, the European Union is is issuing a policy to regulate the export of recycled paper.

To overcome this, his party is facilitating Indonesia to enter the country list of European Union Waste Shipment Regulation (EUWSR) policies to support the guarantee of recycled paper raw materials.

"European Union issued, regulated, controlled exports of recycled paper and we facilitated this. Our efforts include bringing Indonesia on a country list, so that Kamo companies can import recycled paper raw materials from Europe," he said.

On the same occasion, Director of the Indonesian Pulp and Paper Association (APKI) Raw Materials Committee, Irsyal Yasman, said that the cause of the pulp and paper industry could not be separated from the Regulation of the Minister of Trade (Permendag) Number 37 of 2025 concerning Amendments to the Regulation of the Minister of Trade Number 16 of 2025 concerning Import Policy and Regulation.

In addition, there are a number of trade agreements that cause the flow of goods entering from China to run smoothly, such as the ASEAN-China Free Trade Area (ACFTA) and the Regional Comprehensive Economic Partnership (RCEP).

"These two agreements actually a bit detrimental to paper (industry). In China-FTA we can still use reward rates, especially goods entering from China. If China imposes 2-6 percent, we can still use a 5 percent reciprocal rate. If the difference is 1-2 percent, we can still compete," he explained.

However, in the RCEP agreement, said Irsyal, Indonesia released around 224 HS codes from China.

Meanwhile, China only freed 13 HS from Indonesia.

"What China will release is only 13 tariff posts. Meanwhile, we have released China 224 tariff posts. Well, what worries us is that the revision of the Permendag will take effect on August 29, of which 441 HS codes for wood and forestry products include pulp and paper without any more import approvals," he concluded.