Enviro News Asia, Jakarta – Indonesia is preparing to reclaim its dominance in Pakistan’s paper market after facing trade barriers since 2018. Optimism has surged following the Lahore High Court (LHC) of Pakistan’s decision in November 2024 to permanently revoke the anti-dumping duties (ADD) on Indonesian paper.
This ruling marks a turning point for Indonesian paper producers and exporters, enabling them to boost exports to Pakistan once again.
Minister of Trade Budi Santoso stated that this achievement was the result of continuous efforts by the Ministry of Trade’s Directorate of Trade Security (DPP) and industry players, who collaborated in legal defenses.
Efforts to contest the anti-dumping duties began with the initial investigation in 2016 and continued through the sunset review, including submitting defense documents and consulting with Pakistani investigative authorities.
“The Lahore High Court’s permanent revocation of the anti-dumping duties on Indonesian paper is a turning point that brings fresh opportunities for our paper producers and exporters. With the removal of these duties, Indonesia has a golden opportunity to reclaim its position in Pakistan’s paper market,” said Minister of Trade Budi Santoso.
Minister Santoso highlighted that since 2015, Indonesia was the dominant paper supplier in Pakistan, holding a market share of 70.5%, significantly higher than China’s 7.7%. However, in 2017–2018, Indonesia faced dumping allegations from Pakistan regarding uncoated writing and printing paper (HS codes 480255, 480256, and 480257).
In response, the Pakistan National Tariff Commission (NTC) imposed a five-year ADD from March 30, 2018, to March 30, 2023. The NTC attempted to extend the duties in November 2023, but this extension was overturned by the Lahore High Court in November 2024.
“The imposition of these duties significantly impacted Indonesia’s paper exports to Pakistan, which initially stood at $57.3 million in 2018 but dropped to $32.4 million in 2021. However, Indonesia’s paper exports rebounded in 2022, rising to $49.1 million,” Minister Budi Santoso explained.
Despite these fluctuations, Indonesia’s paper industry remains strong and has the potential to reclaim its market share in Pakistan. Given the growing demand, Pakistan’s annual paper import growth averaged 7.1% between 2019 and 2023.
“If optimized with the right strategy, Indonesia’s paper exports to Pakistan could grow significantly, potentially reaching $61.3 million by 2030. This is a positive step for Indonesia to strengthen its competitiveness and reclaim its position as the leading paper supplier in the Pakistani market,” added Minister Budi Santoso. ***
