Indonesia’s steel industry is experiencing strong momentum, with the government aiming to increase installed crude steel production capacity from 21 million tons to 27 million tons by 2029. This initiative aligns with the country's broader manufacturing goals, as the manufacturing sector contributed USD 196.5 billion in exports in 2024—making up over 74% of national exports. Minister of Industry Agus Gumiwang emphasized that the manufacturing sector, particularly the basic metals subsector, is a strategic pillar of national industrial growth and recorded a 14.47% year-on-year growth in Q1 2025.
Indonesia is currently ranked 14th globally in crude steel production with 17 million tons in 2024—a 98.5% increase from 2019. The government remains optimistic about moving into the global top 10. Policy support, including tax incentives, mandatory domestic product use, gas subsidies, and green industry principles, is being implemented to maintain growth. These measures aim to enhance competitiveness, strengthen value chains, and prevent deindustrialization claims while boosting exports and national infrastructure development.
