Indonesian Salt Industry Warns of Production Disruption Risk

Quality Gap in Domestic Salt Production

The Indonesian government plans to stop salt imports from 2025 to 2027, but industry stakeholders are raising concerns about the readiness of domestic production to meet industrial needs. Erwin Aksa, Vice Chairman of Kadin Indonesia, emphasized that the policy can only be implemented if national supply is guaranteed, particularly for industries requiring high-quality salt.

Industrial Requirements vs. Domestic Supply

The industry needs salt with high purity (97-99% NaCl) and very low moisture content for manufacturing processes. However, current domestic production data lacks separation between consumption salt and industrial salt. In 2024, national salt production reached approximately 2.04 million tons, but this doesn't guarantee quality standards for industrial use.

Significant Demand-Supply Gap

Indonesia's total salt demand is nearly 5 million tons annually, with over 3 million tons required by the industrial sector. The current domestic supply is insufficient to meet this demand, both in terms of volume and quality. Erwin Aksa stated that the local supply is not yet ready to fully replace imports, highlighting a significant gap that needs to be addressed.

Policy Considerations for Future Implementation

The industry is urging the government to base the import cessation policy on data-driven decisions. Without proper data on domestic production quality and volume, halting imports could disrupt industrial production processes that rely on high-quality salt. The government needs to bridge the existing gap between national production capacity and industrial requirements before implementing such a policy.