Indonesia's steel industry has seen significant growth this year, with rising demand from multiple sectors, including national construction projects and supporting industrial activities such as nickel. The Director General of Metal Industry at the Ministry of Industry pointed out that steel is closely linked with other industries, and the government does not ban the import of raw materials, but prioritizes support for local industrial participation to ensure that the benefits of economic activities flow domestically.
He emphasized that as long as there is added value, a larger share will be given, but a greater proportion must be reserved for local industry to retain key industrial activities at home. Since the beginning of this year, the basic metal industry (including steel) has grown by 14.47% year-on-year, the highest among all industrial sub-sectors, with steel once again becoming a pillar of the national economy. The growth is attributed to supply chain linkages between steel and other industries such as nickel, with the active nickel sector driving steel demand.
Furthermore, surge in market demand is also a key factor, with large infrastructure projects and the construction of the new capital (IKN) significantly boosting steel consumption. The government has invested IDR 48.8 trillion in IKN, aiming to complete the political capital by 2028, requiring substantial steel support. He expressed hope that the steel industry will continue to be a major driver of economic growth, leveraging its high synergy with other industries to consolidate its core position in the industrial system.
Indonesia's steel industry has seen significant growth this year, with rising demand from multiple sectors, including national construction projects and supporting industrial activities such as nickel. The Director General of Metal Industry at the Ministry of Industry pointed out that steel is closely linked with other industries, and the government does not ban the import of raw materials, but prioritizes support for local industrial participation to ensure that the benefits of economic activities flow domestically.
He emphasized that as long as there is added value, a larger share will be given, but a greater proportion must be reserved for local industry to retain key industrial activities at home. Since the beginning of this year, the basic metal industry (including steel) has grown by 14.47% year-on-year, the highest among all industrial sub-sectors, with steel once again becoming a pillar of the national economy. The growth is attributed to supply chain linkages between steel and other industries such as nickel, with the active nickel sector driving steel demand.
Furthermore, surge in market demand is also a key factor, with large infrastructure projects and the construction of the new capital (IKN) significantly boosting steel consumption. The government has invested IDR 48.8 trillion in IKN, aiming to complete the political capital by 2028, requiring substantial steel support. He expressed hope that the steel industry will continue to be a major driver of economic growth, leveraging its high synergy with other industries to consolidate its core position in the industrial system.