New Delhi, Jan 26 || Indonesia’s micro, small and medium enterprises are coming under growing pressure as cheap imports from China flood domestic markets, raising concerns about the country’s long-term industrial health and economic independence, a report has said.
Latest trade data shows that China now accounts for more than one-third of Indonesia’s total imports -- highlighting a deepening imbalance in trade relations.
In January 2025 alone, imports from China touched around $6.37 billion, making up about 35.5 per cent of Indonesia’s overall imports, as per a report by Financial Post.
Across the country, from traditional markets in Surabaya to online stores in Jakarta, many MSMEs are shutting down production and shifting to reselling Chinese-made goods.
These enterprises employ nearly 90 to 95 per cent of Indonesia’s workforce, and their move away from manufacturing is seen as a warning sign for the wider economy.