The Indonesian government is actively promoting foreign investment to enhance the national steel industry and reduce dependence on imports. By inviting investors from Europe, China, and Vietnam to establish steel plants in Indonesia, the government aims to increase domestic production capacity while providing investors access to the local market. Currently, around 55% of Indonesia’s steel demand is met through imports, primarily from China, and domestic steel industry utilization stands at 52%.
Deputy Minister of Industry, Faisol Riza, highlighted that foreign investment will not only meet domestic demand but also strengthen the resilience of the national steel sector, following the success of Indonesia’s textile and automotive industries. The government expects that new investments will accelerate import substitution, create job opportunities, and reinforce the domestic metal industry supply chain as a strategic sector supporting national economic growth.
