Indonesia eyes Middle East to reduce steel export reliance

“I am concerned that we are too dependent on one country to export our steel, because if that country experiences economic turmoil, our steel industry will be affected,” Industry Minister Agus Gumiwang Kartasasmita said in Jakarta on Friday.

He noted that most Indonesian steel exports currently go to China, which continues to show strong demand.

However, Indonesia is exploring new markets, including the Middle East, which has high demand for steel for infrastructure and industrial development.

“Countries whose steel industries are not yet well established are also being targeted as potential new markets,” he added.

In 2025, Indonesia’s steel exports reached US$29.7 billion, with China as the largest market at over US$17.9 billion, followed by Taiwan, India, Vietnam, and Italy.

Indonesia also recorded a 7.28-million-ton trade surplus in steel and metal products (HS codes 72–73), with exports of 23.79 million tons and imports of 16.69 million tons. However, excluding ferronickel, the trade balance showed a deficit.

Despite the positive performance, the domestic steel industry faces challenges from restrictive trade policies, global overcapacity, and competition from prefabricated steel.

To address these challenges, the government is strengthening trade remedies, enforcing national standards, promoting green steel, and encouraging downstream investment.

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Translator: Ahmad Muzdaffar F, Nabil Ihsan