Accelerating Downstream Processing to Achieve National Steel Industry Resilience
Jakarta: Deputy for Investment Planning at the Ministry of Investment and Downstream Processing/BKPM, Dedi Latip, stated that his office continues to promote value-added investment through downstream processing across industrial sectors, including steel. This effort simultaneously strengthens the national steel industry in the era of downstream processing and investment expansion.
He affirmed that metal and mineral downstream processing is a national strategic priority, with an investment roadmap focused on increasing steel production capacity.
"The steel industry is a leading sector that serves as a locomotive for national economic growth," said Dedi at the Indonesia Steel Summit & Exhibition Indonesia (ISSEI) 2025, as quoted from a written statement on Friday, 30 May 2025.
According to BKPM records, investment realisation in the base metals sector rose from Rp61.6 trillion in 2019 to Rp200.3 trillion in 2023, with projected national steel demand expected to surge to 100 million tonnes by 2045.
Dedi also highlighted several challenges, including the need for skilled labour, global pressures, and the importance of fiscal incentives. These must become strategic priorities to ensure a successful industrial transformation, he said.
Meanwhile, Secretary General of the Ministry of Industry, Eko S.A. Cahyono, outlined the policy direction and strategy for strengthening the national steel industry. His ministry is committed to reinforcing the steel sector through green and sustainable industrial policies.
He highlighted four key issues currently facing the sector. First, decarbonisation through the implementation of a roadmap towards Net Zero Emissions by 2050, which requires significant shifts away from conventional methods. Second, energy efficiency through industrial audits and production process integration. Third, a circular economy utilising steel slag waste as raw materials for other industries.
"Lastly, overcapacity caused by a flood of global imports, which is being addressed through optimising steel absorption in national projects," Eko explained.
On the other hand, Chairman of the Indonesia Iron & Steel Industry Association (IISIA), who also serves as President Director of PT Krakatau Steel (Persero), Akbar Djohan, affirmed the association's readiness to support the acceleration of national steel downstream processing.
"The national steel industry must strengthen its position in the regional arena through sustained collaboration and synergy," he said.
Akbar Djohan also explained that ISSEI 2025 is a significant event, not only as a national gathering for Indonesia's steel industry but also attracting participants from abroad, as well as ASEAN country associations and the South East Asia Iron & Steel Institute (SEAISI).
"The aim is to build solid collective strength so that regional supply chains can become a new pillar in forging greater, stronger, and more sustainable collaboration and synergy," he asserted.
He affirmed that metal and mineral downstream processing is a national strategic priority, with an investment roadmap focused on increasing steel production capacity.
"The steel industry is a leading sector that serves as a locomotive for national economic growth," said Dedi at the Indonesia Steel Summit & Exhibition Indonesia (ISSEI) 2025, as quoted from a written statement on Friday, 30 May 2025.
According to BKPM records, investment realisation in the base metals sector rose from Rp61.6 trillion in 2019 to Rp200.3 trillion in 2023, with projected national steel demand expected to surge to 100 million tonnes by 2045.
Dedi also highlighted several challenges, including the need for skilled labour, global pressures, and the importance of fiscal incentives. These must become strategic priorities to ensure a successful industrial transformation, he said.
Meanwhile, Secretary General of the Ministry of Industry, Eko S.A. Cahyono, outlined the policy direction and strategy for strengthening the national steel industry. His ministry is committed to reinforcing the steel sector through green and sustainable industrial policies.
He highlighted four key issues currently facing the sector. First, decarbonisation through the implementation of a roadmap towards Net Zero Emissions by 2050, which requires significant shifts away from conventional methods. Second, energy efficiency through industrial audits and production process integration. Third, a circular economy utilising steel slag waste as raw materials for other industries.
"Lastly, overcapacity caused by a flood of global imports, which is being addressed through optimising steel absorption in national projects," Eko explained.
On the other hand, Chairman of the Indonesia Iron & Steel Industry Association (IISIA), who also serves as President Director of PT Krakatau Steel (Persero), Akbar Djohan, affirmed the association's readiness to support the acceleration of national steel downstream processing.
"The national steel industry must strengthen its position in the regional arena through sustained collaboration and synergy," he said.
Akbar Djohan also explained that ISSEI 2025 is a significant event, not only as a national gathering for Indonesia's steel industry but also attracting participants from abroad, as well as ASEAN country associations and the South East Asia Iron & Steel Institute (SEAISI).
"The aim is to build solid collective strength so that regional supply chains can become a new pillar in forging greater, stronger, and more sustainable collaboration and synergy," he asserted.