In recent discussions among Indonesia’s steel industry associations, leaders have urged the government to implement open and transparent import quota mechanisms to protect and empower the domestic steel sector. Stephanus Koeswandi of IZASI points out that in 2024, national steel consumption reached roughly 18.58 million tons, while domestic production was about 15.82 million tons. Meanwhile, steel imports—especially hot-rolled, cold-rolled, and coated products—totalled 8.72 million tons, surpassing exports, which stood at 5.96 million tons. Open quotas, it is argued, would allow regulators and stakeholders to better monitor and manage when and how much steel should be imported, helping maintain supply chain stability and guarding against unfair competition from cheaper imported goods.
The associations—IZASI, IISIA, ARFI, ARMI, and ISSC—warn that the domestic steel industry is being pressured by excessive imports, which undermine competitiveness, optimal capacity usage, and employment. They propose several measures: tighten import quotas, impose non‐tariff protections, harmonise tariff policies from upstream to downstream products, stop imports of fabricated steel for construction, and consider foreign investment moratoriums in certain areas. The goal is to ensure that growing demand—propelled by infrastructure, manufacturing, and economic expansion—benefits local producers and contributes to economic resilience rather than being undermined by external imports.
