Indonesia’s Deputy Minister of Industry, Faisol Riza, has urged international steel manufacturers not just to export to the country but to invest in domestic manufacturing facilities. His appeal aims to strengthen the national steel industry by reducing dependence on imports, which currently account for about 11 million tons annually. He emphasised that investing in local production allows these producers access to Indonesia’s domestic market and helps build capacity for future export opportunities.
The minister noted that about 55% of Indonesia’s steel consumption is still met by imports, primarily from China, while domestic plants are operating at roughly 50% capacity utilization. He highlighted that most national steel production focuses on the construction and infrastructure sectors, and that production of higher-value specialty steels for industries such as automotive, heavy equipment, shipping, and machinery remains underdeveloped.
