Indonesia Applauds New Steel Industry Investment

  • 27 Jan 2026 11:33 WIB
  •  Voice of Indonesia

RRI.CO.ID, Purwakarta: Indonesia continues to boost its national steel industry to support economic growth and sustainable industrialization. The commitment was marked by the groundbreaking of the Continuous Galvanizing Line 2 facility of PT Tata Metal Lestari in Purwakarta, West Java, Monday, 26 January 2026.

The Ministry of Industry, Agus Gumiwang Kartasasmita, said the investment reflects Indonesia’s strategy to reinforce its metal industry structure. Officials view the steel sector as a key pillar supporting infrastructure development and downstream industries.

The initiative also aligns with broader industrial transformation efforts. He also highlighted the strategic role of the national steel industry. He said steel supports infrastructure projects, technological advancement, and various manufacturing sectors.

These include automotive, shipbuilding, machinery, and energy industries. “Indonesia’s national steel industry plays a strategic role in supporting infrastructure development, technological advancement, and strengthening downstream industries such as machinery, automotive, shipbuilding, and the energy sector,” he conveyed.

The ministry noted significant growth in national steel production over recent years. Output increased by nearly 98.5 percent compared to 2019 levels. The growth indicates rising capacity and competitiveness within Indonesia’s steel industry.

“This reflects the continuously growing capacity of Indonesia’s national steel industry and its increasing competitiveness,” Minister Agus conveyed.

To further boost performance, the government continues to optimize strategic industrial policies. These include trade remedies, mandatory national standards, fiscal incentives, and industrial green principles.

The measures aim to enhance sustainable capacity and utilization. “These policies are directed at increasing the capacity and utilization of the national steel industry on a sustainable basis, while strengthening the competitiveness of domestic steel products in both domestic and export markets,” he said.

The government expects new investments to strengthen Indonesia’s steel ecosystem from upstream to downstream. Officials believe the sector will generate added value, employment, and regional economic growth.

The initiative also supports Indonesia’s goal of building globally competitive, industry-based economic resilience.

 

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