Indonesian Investigation into Refrigerant Import Protection

Explore the Indonesian Trade Protection Committee's investigation into extending measures against refrigerant imports and its impact on local industry.

Indonesian Investigation into Refrigerant Import Protection
Indonesian Investigation into Refrigerant Import Protection

The Indonesian Trade Protection Committee (KPPI) has begun an investigation into extending trade protection measures (TPP) against imports of refrigerant products, specifically roll bond and fin types, effective from April 7. This investigation targets products classified under the identification number ex8418.99.10 according to the Indonesian customs tariff list for 2022.

This investigation comes in response to a request submitted by PT Fujisei Metal Indonesia, a leading company in refrigerant production. KPPI Chairperson Julia Gustaria Silalahi indicated that there are signs of serious losses or threats of significant losses that the company may face due to imports.

Details of the Investigation

In her statement, Julia confirmed that negative indicators are evident in the decline of local industrial performance from 2023 to 2025. She explained that PT FMI requires more time to complete a structural adjustment program aimed at enhancing its competitiveness.

This investigation is expected to contribute to protecting the local industry from threats posed by imports. Dwi Widodo, the marketing director at PT FMI, expressed hope that this measure would help strengthen the competitiveness of local products compared to imported ones, especially from China.

Background & Context

Indonesia is considered one of the largest markets for refrigerant consumption in Southeast Asia, with these products being widely used in the refrigerator and air conditioning industries. In recent years, the country has witnessed a significant increase in refrigerant imports, raising concerns among local producers.

Data indicates that approximately 97.69% of refrigerant imports in 2025 originated from China, followed by Thailand, Mexico, and Japan. This heavy reliance on imports reflects the challenges faced by the local industry in competing with imported products.

Impact & Consequences

The outcomes of this investigation could lead to significant changes in Indonesian trade policy, as additional tariffs may be imposed on imports to protect the local industry. This could enhance local production and create more job opportunities.

However, imposing additional tariffs could also lead to increased prices for consumers, raising concerns about the impact on citizens' purchasing power. Therefore, it is crucial for the government to balance protecting the local industry while ensuring consumers are not burdened with extra costs.

Regional Significance

This investigation is an important step in safeguarding the local industry and enhancing competitiveness in the face of rising imports. It reflects the government's commitment to supporting domestic producers while navigating the complexities of international trade.

In conclusion, the KPPI's investigation into trade protection measures against refrigerant imports highlights the ongoing challenges faced by Indonesia's local industry and the need for strategic actions to ensure its sustainability and growth.

What are trade protection measures?
Trade protection measures are actions taken by the government to shield local industries from unfair competition from imports.
How do imports affect the local industry?
Imports can lead to decreased sales and profits for local companies, negatively impacting the local economy.
What are the potential risks of imposing additional tariffs?
Imposing additional tariffs may increase product prices for consumers, affecting their purchasing power.

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