Inaugurating New IISIA Board, Industry Minister Agus Highlights Challenges and Potential of National Steel Industry
Industry Minister (Menperin) Agus Gumiwang Kartasasmita reminded of the importance of strengthening the national steel industry structure to drive the national economy in the future.
He conveyed this at the inauguration event of the board of The Indonesian Iron & Steel Industry Association (IISIA) for the 2026–2030 period in Jakarta today. His side, he said, reaffirmed the commitment to strengthening the steel industry as one of the strategic sectors supporting Indonesia’s economy.
According to him, IISIA, as an association overseeing domestic steel producers, is a strategic partner of the government in promoting industry structure strengthening. Particularly in building a self-reliant, competitive, and sustainable steel industry.
“The government views IISIA as an important partner in strengthening the national steel industry. The new board is expected to address global challenges while optimising strategic opportunities ahead,” stated the Industry Minister.
He explained that the basic metal industry subsector, including steel, is one of the economic drivers with growth reaching 15.71% in 2025. This achievement was driven by increasing demand from infrastructure, manufacturing, and value-added downstream industries.
Agus also revealed that Indonesia currently ranks 13th in the world as a steel producer with production reaching around 19 million tonnes in 2025. Over the last six years, national steel production has grown consistently with an average annual growth of around 14%.
Nevertheless, the Industry Minister highlighted ongoing structural challenges, such as low steel industry utilisation at around 52.7%, as well as deficits in intermediate and downstream products due to high imports of raw materials. In addition, global pressures in the form of excess world steel capacity and potential dumping practices are also a serious concern for the government.
“To that end, the government has prepared various strategies to strengthen the national steel industry, including market protection, implementation of mandatory SNI (Indonesian National Standard), strengthening downstreaming, and providing fiscal incentives to increase investment,” he asserted.
On the same occasion, IISIA Chairman Muhamad Akbar expressed the new board’s commitment to strengthening IISIA’s role as a collaborative platform for the national steel industry.
“We want IISIA to be a solid home for all steel industry players, while also serving as a strategic partner to the government in advancing the national industry. The steel industry is not just an economic sector, but the foundation of national development,” he said.