Video: Testing the Resilience of Indonesia's Local Steel Industry Amid Global Turmoil in 2026

Jakarta, CNBC Indonesia — Commodity price increases amid geopolitical turbulence from Middle Eastern conflicts and the Russia-Ukraine war are significantly affecting Indonesia’s steel industry.

Vice President of Tatalogam Group, Stephanus Koeswandi, stated that Tatalogam Group, a producer of steel-based building materials such as metal roof tiles and light-gauge steel, has experienced rising raw material costs as a result of global commodity volatility.

Looking ahead to 2026, the steel industry hopes that imported steel supply, particularly from China, can be controlled to prevent the collapse of local manufacturers. This can be achieved through government efforts to establish Indonesian National Standards (SNI) for imported products circulating in Indonesia.

In response to these conditions, Tatalogam is focusing on strengthening production capacity from 250,000 tonnes to 500,000 tonnes annually to reach larger markets.