Indonesian industry calls for end to seamless pipe import quotas

Industry representatives are urging the Indonesian Ministry of Industry to stop granting masterlist facilities and import quotas for seamless pipes to complementary industries, such as threading companies and heat treatment processors.

Michael Johan Gary, Director of PT Indo Sino Internasional, stated that the national seamless pipe industry currently possesses the manufacturing facilities and production capabilities to meet domestic needs. He argued that import facilities should be evaluated and strictly applied according to existing regulations, specifically Ministry of Finance Regulation Number 217/PMK.04/2019.

Under current rules, import tax exemptions and duty waivers are intended for goods that cannot be produced domestically, do not meet required specifications, or where domestic production is insufficient. Industry leaders warn that continued import facilities for available domestic products could undermine the competitiveness of local producers, reduce production capacity utilization, and discourage investment in the sector. There are also concerns that a flood of imported products could lead to domestic manufacturer bankruptcies and potential mass layoffs.