Diversifying Indonesia's Steel Export Markets, Agus Gumiwang Targets Middle East and Developing Countries
Industry Minister Agus Gumiwang Kartasasmita is pushing for the diversification of Indonesia’s steel export markets by targeting the Middle East region and developing industrial countries.
The aim is to reduce dependence on a single primary destination country while strengthening national industrial resilience. Currently, Indonesia’s steel exports are still concentrated on China, which is considered risky if economic disruptions occur in the main destination country.
When dependence on one market is too high, the potential for economic turmoil in that country can directly impact the performance of the national steel industry.
“So, I am concerned about our export destination country’s dependence on one country. When that happens, if we assume that country experiences turmoil or economic problems, it will definitely impact our steel industry,” said Agus in Jakarta on Friday, 10 April 2026.
Nevertheless, the Minister of Industry emphasised that the high demand from China remains a positive factor for national export performance. However, Indonesia must still anticipate future risks if there is a slowdown or economic disruption in that country that could pressure national steel exports.
As an alternative, the government sees export opportunities to the Middle East region, which is considered to have a large need for steel products, especially for rebuilding infrastructure and industrial facilities such as refineries.
In addition, countries with weak steel industry bases are also seen as potential new markets for Indonesian exports.
“Countries whose steel industry strength, or in the surrounding areas or regions where the steel industry strength is still not solid, not yet too strong, can also become our next target market,” said Agus.
In terms of performance, Indonesia’s steel product exports in 2025 were still dominated by five main markets, namely China, Taiwan, India, Vietnam, and Italy, from a total national steel export value of around US$29.7 billion. China is the largest destination with a value of more than US$17.9 billion, followed by Taiwan at around US$1.8 billion, India US$1.6 billion, Vietnam US$864 million, and Italy US$777 million.
“That achievement positions Indonesia as one of the largest steel exporters in Southeast Asia, reflecting the competitiveness of national steel products in regional and global markets,” he said. (Ant).