South Korean steel company Posco Holdings has expressed interest in\nincreasing its investment in Indonesia through the development of the\nsecond phase of the PT Krakatau Posco (PTKP) project. This commitment\nwas conveyed during President Prabowo Subianto\u2019s visit to South Korea on\n1 April 2026.<\/p>\n
PT Krakatau Posco General Manager, June Hwang, revealed that during\nthe bilateral meeting, Posco submitted a Letter of Intent (LOI) to the\nIndonesian government to explore further cooperation opportunities. The\nfocus is on the second-phase development project of PTKP.<\/p>\n
Minister of Investment and Downstreaming, as well as CEO of\nDanantara, Rosan Perkasa Roeslani, who was also present, stated that\ndiscussions are ongoing between Danantara and Posco regarding the PTKP\nproject.<\/p>\n
\u201cThe CEO of Posco Holdings reported plans for an investment worth\napproximately US$4.3 billion by 2029, and proposed a joint investment\nscheme with Danantara in a 50:50 composition,\u201d Hwang told Bisnis on\nSunday (19\/4\/2026).<\/p>\n
Prabowo, according to him, responded positively to the plan and\nemphasised the importance of accelerating the project\u2019s realisation. The\nIndonesian government views the development of PTKP as an important part\nof driving national industrialisation, particularly through the\nproduction of high-value-added steel, including for the automotive\nsector.<\/p>\n
Strengthening the steel industry is considered a foundation for\nnational economic growth and the development of strategic sectors such\nas automotive, defence, energy, and infrastructure. In the context of\nthe 8% economic growth target, domestic steel industry capacity becomes\na key factor in supporting downstream sector expansion.<\/p>\n
\u201cThe PTKP project is expected to make a significant contribution to\nIndonesia\u2019s economic growth through the production of high-quality\nsteel, including automotive steel,\u201d said Hwang.<\/p>\n
Globally, the steel industry remains the backbone of urbanisation and\nindustrialisation. In Indonesia, steel demand is projected to increase\nto around 29 million tonnes by 2035, in line with growth in the\nmanufacturing and machinery sectors. However, the supply of high-quality\ndomestic steel is still limited, so reliance on imports is expected to\ncontinue.<\/p>\n
Therefore, through the second-phase development of PTKP, Posco plans\nto introduce advanced production technology to enhance efficiency and\neconomies of scale. The project will also produce high-value-added\nautomotive steel, which is currently met by imports for about 90%.<\/p>\n
In addition to technological aspects, the company is committed to\nsupporting human resource development in Indonesia\u2019s advanced technology\nindustry sector.<\/p>\n
From an economic perspective, the PTKP project is projected to\ncontribute around US$5 billion per year, consisting of a direct\ncontribution to gross domestic product (GDP) of about US$2.2 billion and\nadded value of around US$3 billion. The project is also estimated to\ncreate around 36,000 jobs, both direct and indirect.<\/p>\n
Currently, Posco, together with Krakatau Steel through PT Krakatau\nPosco, has been producing around 3 million tonnes of steel per year\nsince 2013 to support various national strategic projects.<\/p>\n
\u201cThus, PT Krakatau Posco is expected to become a strategic partner in\nrealising Indonesia\u2019s national steel industry growth vision,\u201d said\nHwang.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/posco-explores-additional-us-4-3-billion-investment-for-steel-plant-expansion-1776577847", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }