Indonesia is drawing up contingency plans after the European Union and the United Kingdom raised tariffs on steel imports above quota to 50%. Dina Kurniasari, director of WTO negotiations at the Trade Ministry, told a seminar in Tangerang on 16 October that the changes affect market access and the competitiveness of Indonesian steel, Antara news agency reported.
She said trading partners are increasingly using trade remedies to protect domestic industry, respond to global overcapacity and meet climate goals. WTO rules allow members to adjust their bound tariffs, she noted, but such changes must follow multilateral procedures and respect partners’ rights.
Europe’s tougher regime
The EU’s new system, Regulation (EU) 2026/1384, replaced its 2018 steel safeguard on 1 July 2026. According to the European Commission, it reduces duty-free quota volumes by about 47% to a total of 18.3 million tonnes a year, raises the duty on imports above quota to 50% and widens coverage from 28 to 30 product categories. Importers must also prove where steel was first melted and poured. The UK introduced its own replacement regime with a 50% above-quota tariff at the same time.
Jakarta’s risk list
The ministry’s trade policy agency identified three main threats: weaker price competitiveness in European markets, restricted access through strict quotas and climate rules such as the EU’s Carbon Border Adjustment Mechanism, and greater uncertainty in global trade. Indonesia will keep pushing through diplomatic channels for transparent, non-discriminatory trade rules while preparing for worst-case scenarios, Antara reported.
Ismail Mandry, vice-chairman of the Indonesian Iron and Steel Industry Association, said its 189 members have combined capacity of 18 million tonnes a year, as the country continues to expand domestic steelmaking.
Europe’s steel walls were built against Chinese overcapacity, but expanding producers such as Indonesia are among those that hit them hardest.
What to watch
- Whether Indonesia seeks WTO consultations or compensation over the EU and UK tariff changes.
- How country-specific EU quota allocations treat Indonesian producers.
