Indonesia Corrugates Paper Free from Philippines Safeguard Duty

RRI.CO.ID, Jakarta - Indonesian corrugating medium paper products are officially free from the threat of Safeguard Import Duties (BMTP) by the Philippine government. This decision is based on the final investigation report from the Philippine Tariff Commission (TC) dated January 29, 2026. In the report, the TC decided that imports of corrugating medium products from Indonesia do not cause serious injury to the Philippine domestic industry.

Indonesia's Minister of Trade, Budi Santoso, appreciated the decision of the Philippine TC. He assessed that the exemption of Indonesian corrugating medium products from the threat of BMTP imposition demonstrates that Indonesian products are competitive and have been traded fairly. Budi Santoso also emphasized that the Indonesian Ministry of Trade is committed to continuously safeguarding and securing market access for Indonesian products from trade barriers.

"The freedom of corrugating medium products from the imposition of BMTP in the Philippines proves that our products are not only competitive but have also played fairly in the global market. This opportunity must be utilized optimally to strengthen Indonesia's position as a key player in the global packaging industry supply chain," Budi said as quoted from an official statement on Friday, February 20, 2026.

In line with Budi Santoso, the Director General of Foreign Trade at the Ministry of Trade, Tommy Andana, also welcomed the Philippine government's decision. He invited producers to seize this opportunity to accelerate exports of corrugating medium products.

"The Philippines' decision is good news for the local industry. We invite Indonesian corrugating medium producers to take advantage of this momentum to accelerate Indonesia's export performance and maintain market share in the regional area," Tommy said.

The Director of Trade Security at the Ministry of Trade, Reza Pahlevi Chairul, stated that the government had actively submitted submissions and participated in public hearings to ensure a fair investigation. Indonesia's exemption from BMTP demonstrates the effectiveness of Indonesia's trade defense mechanisms.

"This success occurred due to the synergy between the Ministry of Trade and business actors in mounting a defense during the investigation process. The resulting decision shows that Indonesia's trade defense mechanism has been effective and aligns with the provisions of the World Trade Organization," Reza said.

Based on data from the Central Statistics Agency (BPS), the export value of corrugating medium products (HS 4805.12.00, 4805.19.10, and 4805.19.90) from Indonesia to the Philippines recorded an increase of 27 percent during the 2022–2024 period. In 2022, the export value of corrugating medium products was recorded at USD 2.8 million, then rose to USD 4.4 million in 2024.

Total trade between Indonesia and the Philippines in 2025 was recorded at USD 12.02 billion, with Indonesian exports to the Philippines reaching USD 10.22 billion and Indonesian imports from the Philippines at USD 1.8 billion. Indonesia recorded a surplus of USD 8.42 billion.

Meanwhile, in 2024, total trade between Indonesia and the Philippines reached USD 12.54 billion. Indonesian exports to the Philippines amounted to USD 10.75 billion and Indonesian imports from the Philippines amounted to USD 1.79 billion. Indonesia had a trade surplus with the Philippines of USD 8.96 billion.