The Ministry of Trade (Kemendag) stated that the steel downstreaming policy can enhance industrial added value and support sustainable economic development. According to Andri Gilang Nugraha Ansari, Director of Industrial and Mining Product Exports, steel downstreaming plays a crucial role in driving economic growth, both in the real sector and exports. This policy increases industrial value by producing finished products with higher selling prices than raw materials, fosters economic sustainability, and promotes balanced development. Additionally, it boosts demand in steel-consuming industries such as automotive, heavy equipment, and construction while strengthening human resource development and technological expertise.
According to Bappenas data, this policy could boost economic growth to 5.7–5.9% due to annual steel demand reaching 20–30 million tons. Gilang noted that steel downstreaming contributes to export growth and trade balance surplus. In 2024, Indonesia’s total steel exports (HS 72 and HS 73) reached USD 29.23 billion, with a volume of 22 million tons, marking a 2.88% value increase and a 19.97% volume rise from 2023. Steel exports accounted for 11.04% of Indonesia's total exports, while steel imports fell by 5.30% to USD 14.90 billion, leading to a trade surplus of USD 14.33 billion. Kemendag continues to push for market expansion and trade protection to safeguard domestic and international steel markets from discriminatory practices and unfair competition.
