Indonesia's steel industry has made a remarkable leap to the 4th position globally, reflecting the intense competition in this sector. Driven by increasing demand in construction, automotive, and manufacturing, the steel industry significantly contributes to the national economic stability. In 2023, Indonesia's steel export value reached USD 26.70 billion, a 261.49% increase from USD 7.39 billion in 2019. Over the past five years, Indonesia's steel industry and exports have grown rapidly. Currently, Indonesia ranks 4th among global steel exporters, up from 17th in 2019. In 2023, steel export values reached USD 26.70 billion, up 261.49% from USD 7.39 billion in 2019. The steel import value in 2023 was USD 11.38 billion, resulting in a trade surplus of USD 15.32 billion. National steel consumption is estimated to reach 18.3 million tons, growing by 5.2% in 2024, driven by various conditions boosting steel demand. "Indonesia is also aggressively developing infrastructure and promoting the manufacturing industry, such as the IKN development, infrastructure projects, and automotive industry growth. There are at least 41 national strategic priority projects targeted for completion in 2024," he added.
Several strategies and policies have been implemented to continue supporting the increase in national exports. These efforts include opening access to foreign markets through Free Trade Agreements (FTA), Preferential Trade Agreements (PTA), and Comprehensive Economic Partnership Agreements (CEPA) with Canada and the European Union, as well as expanding into non-traditional markets. "The Ministry of Trade continues to protect and promote the domestic steel industry. Efforts include import restrictions on certain steel products, encouraging value-added exports through product downstreaming, and supervising steel imports to ensure compliance with established regulations," Zulkifli Hasan explained. He also mentioned that Indonesia's steel industry faces trade restrictions from other countries, such as trade remedies and the Carbon Border Adjustment Mechanism (CBAM). However, Indonesia has significant opportunities to overcome these trade barriers. This is demonstrated by the recent export of 160 tons of high-tech steel products valued at USD 195,000 to Australia, Canada, and Puerto Rico.
