Jakarta. The Indonesian Iron and Steel Industry Association (IISIA) on Friday warned of a possible influx of Chinese steel products into the domestic market, as China seeks alternative export destinations following the United States’ recent decision to impose a steep 145 percent tariff.

IISIA Chairman Muhammad Akbar Djohan noted that China, the world’s largest iron and steel producer, currently manufactures around 1.2 billion tons annually.

“The tariffs imposed by US President Donald Trump may not directly affect Indonesia, but we must anticipate China's move to redirect its steel exports to other countries,” Akbar said in Jakarta. “Indonesia remains an attractive destination for Chinese goods, so proactive steps are needed.”

With its large market size and growing purchasing power, Indonesia presents a lucrative opportunity for foreign steel producers, he added.

“It’s crucial that the government implements effective policies to safeguard the domestic iron and steel industry,” he said.

Meanwhile, the Trump administration has also slapped a 34 percent tariff on Indonesia, potentially affecting exports to the US. According to IISIA data, Indonesia exported 429,300 tons of steel to the United States in 2024, consisting of 359,500 tons of semi-finished slabs and 7,800 tons of hot-dip galvanized steel. In contrast, Indonesia imported 27,500 tons of steel products from the US, including 12,700 tons of scrap and 12,100 tons of seamless pipes.

Trade Ministry data shows that Indonesia’s overall iron and steel exports surged by 261 percent in 2023, reaching $26.7 billion -- up from $7.39 billion in the previous year. Steel imports during the same period were valued at $11.38 billion.