Indonesia's Paper Imports Surge Amidst Domestic Challenges

Rising Import Figures

Indonesia's paper imports have reached $1.69 billion in the first half of 2025, showing an increase from $1.53 billion during the same period last year. The Ministry of Industry has raised concerns about this trend despite the country's domestic production being considered sufficient to meet local demand.

Challenges Facing Domestic Industry

The Ministry identified several key challenges affecting the domestic pulp and paper industry:

1. Increased imports from China competing with local producers
2. India's quality control measures limiting Indonesian exports
3. High gas prices affecting production costs
4. Supply chain issues related to industrial raw materials

Industry Response

Plt Director General of Agro Industry at the Ministry of Industry, Putu Juli Ardika, noted that the import trend is being closely monitored. The total import value for paper products was $3.2 billion in 2023, rising to $3.4 billion in 2024, and is projected to reach $3.6 billion in 2025. Ardika emphasized that domestic production is capable of meeting almost all paper needs, yet imports remain significantly high.