China imports crimp local plastic industry, business group warns
Industry Minister Muhammad Sarmuji said the government was examining the factors behind the slowdown and exploring possible solutions.
The Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas) has warned that local plastic manufacturers are struggling to compete with cheaper products imported from China. Industry Minister Muhammad Sarmuji stated that the government is investigating the reasons for the decline in production and exploring potential remedies.
Inaplas Chairman Suhat Miyarso pointed out that factories are operating at only 60 to 70 percent capacity due to imported goods being sold at lower prices than domestically produced items. He urged the government to implement measures to regulate imports and offer stronger support for local producers. If these imports can be minimized, Miyarso believes factories could return to full capacity.
The Industry Minister acknowledged that the overall capacity utilization across the manufacturing sector is below ideal levels and affirmed that the government is assessing the situation and identifying the necessary steps to address the issue.
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