The April 2025 edition of the IMF's World Economic Outlook report projects global economic growth in 2025 at 2.8%, decreasing by 0.5% from the previous projection due to ongoing global economic strain. However, in the Q1 of 2025, Indonesia's economy grew by 4.87%, with growth across most business sectors. The manufacturing sector dominated gross domestic product growth in terms of business fields, contributing 19.25% to the first quarter of 2025 with a growth of 4.55%. Over the past five years, exports of iron and steel commodities have increased by 22.18%. National steel consumption has also continued to grow; in 2024, it reached 18.3 million tonnes, up from 11.4 million tonnes in 2015. It is projected that national steel consumption will continue to rise until reaching 47 million tonnes by 2035.
At the Iron Steel Summit & Exhibition Indonesia (ISSEI) 2025 in Jakarta, Coordinating Minister for Economic Affairs Airlangga Hartanto said that global trade is entering a challenging period, with a 25% structural tariff on iron, steel and aluminium. During ISSEI 2025, the ASEAN Iron & Steel Council Memorandum of Understanding was signed by Malaysia, Indonesia, the Philippines, Singapore, Thailand and Vietnam to improve the regional supply chain of industrial segments, including iron, aluminium and stainless steel. ASEAN represents a significant market opportunity for the steel and iron industry, with a population of 600 million and an economic market valued at over USD 3 trillion. This creates an opportunity for ASEAN to stabilise and grow the Indo-Pacific region amidst the US-China tariff war, China's oversupply, and the European Union's Carbon Border Adjustment Mechanism policy challenges. It is essential to develop strategies that promote more sustainable and environmentally friendly production. Indonesian government is currently reviewing anti-dumping regulations and encouraging the strengthening of the national industry, particularly the upstream to downstream integration.
