Indonesia’s manufacturing sector continues to play a key role in national exports, contributing 74.25% in 2024 with a value of USD 196.5 billion. According to Minister of Industry Agus Gumiwang, the basic metals sub-sector—particularly steel—has demonstrated robust growth, contributing 1.10% to the national GDP and posting a year-on-year increase of 14.47% in Q1 2025. This expansion is driven by rising global demand and the successful implementation of Indonesia’s downstream industrial policy. The country ranked 14th in global crude steel production in 2024, producing 17 million tons, nearly doubling its 2019 output.
The Indonesian government aims to expand installed crude steel production capacity from 21 million tons to 27 million tons by 2029, with hopes of moving into the top 10 global producers. Strategic policies such as trade remedies, mandatory national standards, domestic product prioritization, fiscal incentives, and green industry principles are being used to strengthen competitiveness. The steel sector is now seen as a backbone of industrial development, supporting infrastructure, automotive, and energy industries.
