The Ministry of Industry has called on foreign steel producers exporting their products to Indonesia to establish manufacturing plants here as their presence is crucial in strengthening competitiveness of the national steel industry.

According to data from the World Steel Association, Indonesia ranked 14th among global steel producers, with an output of 18 million tons last year. However, the country remains a net importer, recording an import volume of 12.8 million tons and a deficit of 1.4 million tons.

“Foreign steel producers exporting to Indonesia should invest and expand their production here to reach global markets. We will support such plans with various facilities,” Deputy Minister of Industry Faisol Riza said at the House of Representatives (DPR) building on Monday, November 10, 2025.

He noted that Indonesia’s installed steel production capacity has more than doubled, from 8.56 million tons in 2019 to 18 million tons last year. Faisol added that several foreign producers − including those from Europe, China, and Vietnam − have expressed interest in investing. “Many companies have come to us and the Investment Ministry to inquire about the investment process. The number of steel industry investors will soon increase,” he said.

Faisol pointed out that one of the main reasons for the low competitiveness of local steel compared to imported steel is the use of outdated machinery. Imported steel tends to be cheaper due to more efficient production processes abroad.

He also revealed that the basic metal industry recorded Rp196.4 trillion (US$11.8 billion) in realized investment from January to September 2025, making it the largest contributor to investment among all industrial sectors in the first nine months of the year.

“This reflects the strategic role and potential of the steel industry in supporting national development and economic growth,” he said.

The deputy minister cited that the surge in imported steel is partly driven by a global slowdown in property demand, which has pushed major steel-producing countries to seek new markets with weaker import controls.

“The property sector, which absorbs much of the steel industry’s output, is slowing down globally. As a result, steel-producing nations are targeting markets with less strict border and trade supervision,” he said.

Most of Indonesia’s imported steel this year, he added, originates from China. To address this, Faisol announced plans to tighten import controls to boost the utilization of domestic production capacity. He said the Ministry of Industry is coordinating with the Ministries of Trade and Finance to enhance port-level supervision on steel imports.

“We will strengthen monitoring, particularly through the Ministry of Finance, as customs officers at import ports can directly inspect incoming goods,” Faisol said.