Indonesia Aims to Join World’s Top 10 Crude Steel Producers by 2029
Main Takeaways
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JAKARTA, investortrust.id – Minister of Industry Agus Gumiwang Kartasasmita has set an ambitious target for Indonesia to become one of the world's top 10 crude steel producers within the next three to four years, citing surging production and successful downstream industrial policies.
“We are aiming for Indonesia to reach the 11th or even the 10th spot globally within three to four years,” Agus said in an official statement on Saturday, July 19, 2025.
According to data from the World Steel Association, Indonesia produced 17 million tons of crude steel in 2024—nearly double the 8.5 million tons recorded in 2019, marking a 98.5% increase over five years. This performance lifted Indonesia to 14th place globally in crude steel production rankings.
Manufacturing Drives Export Growth
The manufacturing sector continues to be the backbone of Indonesia’s export economy. In 2024, the country booked $196.5 billion in manufacturing exports, accounting for 74.25% of total national exports. This marked a 5.11% increase from 2023’s figure of $186.9 billion.
In the first quarter of 2025, manufacturing posted a $10.4 billion trade surplus, with the sector contributing 79.4% of total exports.
One of the strongest performers within manufacturing has been the base metals subsector—which includes steel. It contributed 1.10% to GDP in Q1 2025 and registered 14.47% year-on-year growth, the highest among all manufacturing subsectors.
Boosting Competitiveness
To support its global steel ambitions, the government is intensifying a suite of policy tools aimed at strengthening the sector. These include trade remedies against unfair competition, mandatory national standards (SNI), a special industrial gas pricing scheme (HGBT), fiscal incentives, domestic product prioritization, and green industry initiatives.
“These policies are designed to drive sustainable production capacity and utilization, while enhancing the competitiveness of Indonesia’s steel industry in both domestic and international markets,” said Minister Agus.
Currently, Indonesia’s installed crude steel production capacity stands at 21 million tons. The government plans to increase this to 27 million tons by 2029—underscoring its commitment to positioning steel as a pillar of long-term national development.