Indonesia poised to become Southeast Asia's steel industry growth hub

Indonesia is considered to have a significant opportunity to become an investment centre and a growth hub for the steel industry in the Southeast Asian region. Akbar Djohan, Chairman of the Indonesian Iron & Steel Industry Association (IISIA), said that supported by strong economic fundamentals, growth in national steel consumption, and increasing downstream investment, Indonesia is increasingly strategic as a main partner for regional steel industry development. “Southeast Asia is now one of the regions with the most promising steel industry growth prospects in the world. As the largest economy in ASEAN, Indonesia has a great opportunity to attract investment while strengthening strategic partnerships in the iron and steel sector,” he said in a statement in Jakarta on Friday. Akbar, who is also the President Director of PT Krakatau Steel (Persero) Tbk, added that Indonesia is further strengthening its position as a long-term investment destination and strategic partner for steel industry development in the region. He noted that rising national steel consumption and improved export performance indicate the increasing competitiveness of Indonesia’s steel industry in the global market. Amid global economic uncertainty, geopolitical shifts, and the accelerating transition towards a low-carbon industry, Akbar Djohan emphasised that collaboration is the key factor in maintaining the steel industry’s competitiveness. “No single country, company, or organisation can face this transformation alone,” he said at the ‘Mysteel 2026: 1st Southeast Asia Steel Industry Summit’ in Jakarta. He stated that the future of the steel industry will be largely determined by how well knowledge is shared, innovation is encouraged, partnerships are strengthened, and mutual trust is built. He also stressed the importance of creating a healthy level playing field and accelerating the transition to green steel through collaboration between government, industry, financial institutions, technology providers, and the energy sector. Through this international forum, he expressed hope that new partnerships and investments will emerge to strengthen the competitiveness of Indonesia’s steel industry while supporting the national downstreaming and industrial transformation agenda, in line with President Prabowo Subianto’s Astacita vision.