Secret Weapon for EPCs in the Era of Imported Steel Invasion

🌏 The Harsh Reality in the Field

Imagine you are an EPC contractor who has just seen the announcement of a major project tender. You’ve prepared the design, calculated the budget, and compared material prices. Then, a bitter reality emerges: imported steel from China is far cheaper than your local options.

On paper, it seems impossible to compete. But you also know that imported steel isn’t without risks: complex regulations, hidden costs, and the threat of delays at the port.

The question: should you give in to cheap prices, or is there another way to win?

⚠ Challenges That Trap Many EPCs

Cheap prices pressure your proposal. Competitors appear much lower.
Strict regulations. Steel is classified as restricted imports under Permendag 36/2023, requiring permits from the Ministry of Industry and PI.
Mandatory quality standards. Products like rebar must comply with mandatory SNI (Permenperin 55/2024).
Hidden additional costs. Since Dec 31, 2024, the government extended BMAD on HRC (PMK 103/2024). As a result, certain imported steel prices automatically rise.
TKDN factor. For government projects, extra weight is given to EPCs with ≥40% TKDN. A fully-imported offer will almost certainly lose points in evaluation.

Many EPCs stop here, feeling it’s impossible to fight cheap imports. But some take another path.

🔑 Discovering the Secret Weapon

1. TKDN as the first shield

Instead of focusing only on price, smart EPCs leverage TKDN. By combining local supply with strategic imports, TKDN can exceed 40%, granting price preference. Project owners gain confidence, knowing there’s a real contribution to the national industry.

2. PLB as the defensive fortress

Sometimes imports are unavoidable. But instead of bearing high port costs, EPCs can use TCI’s Bonded Logistics Center (PLB).
Imported goods are safely stored, while import duty and VAT are suspended until withdrawal. EPCs gain flexible buffer stock without sacrificing cash flow.

3. USDFS: a clever channel for special imports

Some projects require high-quality materials from Japan. In these cases, EPCs can use the User Specific Duty Free Scheme (USDFS), allowing duty-free imports for specific products. TCI helps assess eligibility and arrange the most efficient import path.

4. TCI as the partner behind the scenes

Here’s where the real “secret” works. EPCs only need to provide budget, specifications, and preferred vendors.
TCI then:

Performs importation checking: whether HS codes require permits, SNI, LS, or BMAD.
Recommends the best facility (PLB, USDFS, or local–import mix).
Executes the entire importation and logistics process.

The result: EPCs arrive at the tender table with realistic pricing, full compliance documents, and a credible supply chain.

⚖ Cheap Isn’t Everything

Let’s be honest: project owners value certainty more than just cheap prices. What good is cheaper steel if it gets stuck for months waiting for permits? Or if it fails SNI and gets rejected at the port?

EPCs working with TCI can confidently say:

“Our price is realistic, not recklessly cheap.”
“Our lead time is measurable, with PLB as buffer.”
“Our documents are complete, compliance risks under control.”

That’s what makes owners choose—not just the numbers on a price sheet.

✨ Conclusion: The Secret Weapon for Victory

In the era of imported steel invasion, cheap prices are a trap. EPCs chasing only low cost will fall into hidden expenses, delays, and loss of credibility.

The true secret weapons are:

TKDN Advantage for evaluation points.
PLB Flexibility for cash flow & lead time.
USDFS to leverage legal & efficient import channels.
TCI as the compliance guardian and logistics partner.

With these weapons, EPCs don’t just survive—they win more strategic tenders amid the flood of imports.