UPDATE: Indonesia starts 'safeguard measures' probe into LLDPE ...

SINGAPORE (ICIS)–Indonesia has initiated an investigation as to whether “safeguard measures” would be needed in response to a sharp increase in imports of linear low density polyethylene (LLDPE), its trade ministry said.

The Trade Security Committee (KPPI) under the Ministry of Trade started the probe on 9 September following a complaint from The Indonesia Olefin, Aromatics and Plastics Industry Association (INAPLAS), acting on behalf of Chandra Asri Pacific and Lotte Chemical Titan Nusantara Indonesia.

The committee noted initial findings suggested there were possible losses to the domestic industry over the years 2021-2023 arising from the sharp increase in imports of LLDPE.

It also noted that the biggest sources of these imports were Malaysia and Thailand, which accounted for over 70% of LLDPE imports into Indonesia.

Government data showed that in 2023, Indonesia’s LLDPE imports increased by 33.3% to 280,385 tonnes, compared with a 3.3% decline registered in 2022, the ministry said.

Some market participants ICIS spoke with said they were not yet ready to respond to the announcement as await more details from the government.

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