Executive Summary

Key insights and market outlook

Indonesian exports including footwear, shrimp, and cloves have been contaminated with radioactive Cesium-137 (Cs-137), prompting the return of two containers of footwear from the United States ¹

⁵. The contamination is linked to a facility in Cikande, Banten, where PT Nikomas Gemilang, a major shoe manufacturer for brands like Nike and Adidas, is located ³. The Indonesian government has formed a task force to handle the situation, engaging with US authorities to resolve the issue.

Full Analysis

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Deep Dive Analysis

Indonesian Exports to US Affected by Radioactive Contamination

Contamination Source Identified in Banten

The Indonesian government has confirmed that radioactive contamination of Cesium-137 (Cs-137) has affected multiple export products, including footwear, shrimp, and cloves, destined for the United States ¹

⁴. The contamination is traced to a facility in Cikande, Banten, where PT Peter Metal Technology (PMT) is believed to be the source of the radioactive material ⁵.

Government Response and International Cooperation

A special task force established by the Indonesian government has been engaging with US authorities, including the FDA, CBP, and DoE, to address the contamination issue. The task force has provided detailed information about the root cause analysis, corrective actions, and preventive measures being implemented ¹

. The cooperation has resulted in a technical cooperation offer from the US DoE to help Indonesia manage the contamination ¹.

Impact on Indonesian Industries

PT Nikomas Gemilang, a major footwear manufacturer in Banten producing for international brands like Nike and Adidas, was found to be contaminated with Cs-137 ³

. However, the Ministry of Industry has stated that the contamination has been contained and does not affect production or exports ⁶. The return of two contaminated footwear containers by the US has raised concerns about potential broader impacts on Indonesian exports ⁵.

Regulatory Oversight and Cleanup Efforts

The Nuclear Energy Regulatory Agency (Bapeten) has been involved in measuring radiation levels and contamination at the affected sites. The agency works closely with the task force to ensure comprehensive handling of the situation ³

. The Ministry of Industry has confirmed that production at Nikomas Gemilang has resumed after clearance from Bapeten ⁶.

References