Citing Difficult Situation, Deputy Minister of Industry Inaugurates Steel Wire Factory in Subang
Jakarta, CNBC Indonesia - Amid the heavy influx of cheap steel imports from China and waves of layoffs due to factory closures, a new factory has instead been established in Subang, West Java, namely Beka Wire Indonesia. Deputy Minister of Industry Faisol Riza acknowledged that the weakening voices of the national steel industry have grown louder recently.
“To be honest, lately there has been a lot of information circulating on social media about layoffs, factory closures, and a sluggish economy that we are all aware of. However, today we are providing proof that amid difficult geopolitical situations—for anyone, not just the government but also business actors—we are witnessing the inauguration or grand opening of PT Beka Wire Indonesia. Thus, we want to convey that even in difficult situations, opportunities will always exist,” said Faisol at the Grand Opening of the Galvanised Iron Wire Factory in Subang on Wednesday (6/5/2026).
He stated that the new factory opens around 120 new job opportunities. Furthermore, he emphasised the importance of the basic metals industry as a key sector in national manufacturing, particularly in meeting the needs for raw materials such as steel wire.
“And especially in the metals sector, the establishment of a factory like Beka Wire will certainly support the basic structure of our metals industry, which indeed requires a lot of iron and steel wire,” said Faisol.
From the business actors’ perspective, the expansion strategy is being carried out gradually to maintain business sustainability while gauging market response. Commercial Director of Beka Wire Indonesia, Sandy Suryadi, did not specify the exact investment value but acknowledged that it exceeds Rp500 billion.
“We are doing it in stages. Initially, we wanted to launch everything full blast, but we decided to run the first phase first, and only after it stabilises and the market gets to know it will we move to the second phase,” he explained.
Despite the high pressure from Chinese imports, the company remains optimistic about competing, especially if supported by appropriate policies.
“Yes, I believe in Indonesia we can compete with China if we are also supported by the government, for example, with materials for natural gas from PGN. And then the main raw material, wire rod, if also supported by the upstream industry, we are confident we can compete domestically,” he said.
Meanwhile, from the legislative side, the new factory is seen as a positive signal for the regional and national economy. Member of the Indonesian House of Representatives Commission XI, Galih Dimuntur Kartasasmita, highlighted the factory’s contribution to job creation and foreign exchange.
“Amid global economic uncertainty that certainly impacts Indonesia’s economy, here they are building and inaugurating a factory. The rumour is—and I will check, and it seems true—that 80 percent are native Subang residents,” he said.
In addition, the Subang location is considered strategic for long-term industrial development, supported by infrastructure connectivity in the Rebana area.
“For me, looking ahead, this will surely become West Java’s Golden Triangle in the future. Subang has a port to the north, about 20 to 30 minutes away, from here to Kertajati Airport on the right. Then there’s the Rebana Industrial Estate,” he explained.