Imports of paper products from China have surged this year even though domestic production is considered sufficient to meet domestic needs.
Based on data from the Ministry of Industry, pulp and paper imports in the first semester of 2025 reached USD 1.69 billion, this figure increased when compared to the same period last year of USD 1.53 billion.
Acting Director General of Agro Industry of the Ministry of Industry Putu Juli Ardika said that the types of imported products that have entered Indonesia are ivory paper and duplex paper used for packaging.
He said the surge in imported products could occur because the domestic pulp and paper industry faced a number of challenges. First, the implementation of quality control orders that limit imports into India. Second, the high price of gas as one of the industrial energy sources, and Third, the limited availability of industrial auxiliary materials.
"We will continue to anticipate the surge in imports of paper products from China and are preparing solutions to overcome it," he said at a hearing with Commission VII of the House of Representatives, in Jakarta (11/11/2025).
Currently, the European Union is issuing a policy to regulate the export of recycled paper, it is facilitating Indonesia's entry into the country list of the European Union Waste Shipment Regulation (EUWSR) policy to guarantee and support recycled paper raw materials.
Agro Industry Must Improve Competitiveness
Commission VII Deputy Chair Evita Nursanty said the agro industry, which includes the paper industry, is facing challenges, especially the flood of imported products.
If this condition continues, it will weaken the competitiveness of the industry, therefore, the agro industry must improve competitiveness by focusing on production and logistics efficiency, product innovation and differentiation, empowering human resources and farmer institutions, improving infrastructure, and strengthening government policies.
"This includes the use of technology, improving the quality of human resources, and policy support such as fiscal incentives and market protection," he said.
Director of the Raw Materials Committee of the Indonesian Pulp and Paper Association (APKI) Irsyal Yasman said that one of the causes of the surge in paper imports from China is the impact of the ASEAN-China Free Trade Area (ACFTA) and Regional Comprehensive Economic Partnership (RCEP) trade agreements.
These two agreements make the flow of goods from China smooth, the core of the agreement, Indonesia exempts around 224 trade commodity codes (Harmonized System / HS) from China. Meanwhile, China only exempts 13 HS from Indonesia.
"The government needs to conduct a review of trade agreements, do not burden Indonesia, especially the paper industry which has been hit," he said.
Corporate actions of the business world
On a different occasion, the Asian Pulp Paper (APP) Group emphasized its commitment to supporting the strengthening of national exports through the signing of five Memorandums of Understanding (MoUs) with strategic partners from Japan, Italy, the UK and Australia at the Trade Expo Indonesia (TEI) 2025 held at ICE BSD, Tangerang on (15/10/2025). The overall commitment value of the agreement reached US$ 976 million for the 2026 fiscal year transaction period.
APP Group also signed a number of strategic trade agreements with international partners. Through its four business units - PT Indah Kiat Pulp & Paper Tbk, PT Pindo Deli Pulp & Paper Mills, PT Tjiwi Kimia Paper Mills Tbk, and PT OKI Pulp & Paper Mills.
The deals include cooperation with APP Japan Limited & Universal Paper Co. Ltd from Japan for US$325 million, APP Italia Srl from Italy for US$350 million, Calington Ltd from the UK for US$133 million, and two partners from Australia - Paper Force Pty Ltd and Sorbent Paper Company Pty Ltd with Solaris Paper Pty Ltd - for US$84 million each.
The signing of all MoUs was witnessed by representatives of the Ministry of Trade of the Republic of Indonesia as well as diplomatic representatives of partner countries, marking a concrete step in strengthening trade relations and expanding market penetration of Indonesian paper industry products in the global arena.
APP Group Director Suhendra Wiriadinata said that this agreement is part of the company's commitment to strengthen national export competitiveness through responsible and sustainable business practices.
"This cooperation reflects the trust of international partners in the quality and consistency of APP Group products. We believe that Indonesia's export competitiveness must be built on a foundation of sustainability, innovation and long-term partnerships," he said in a press release received by SUAR in Jakarta (12/11/2025).
This achievement is in line with APP Group's Sustainability Roadmap Vision 2030 (SRV 2030), as well as part of the company's long-term commitment through its new sustainability platform Regenesis with its initial Forest Positive Policy initiative.
