Indonesia’s steel industry leaders are calling for a transparent import quota system to protect and empower domestic producers amid rising foreign competition. With national steel consumption climbing and imports outpacing exports, stakeholders argue that unchecked inflows threaten supply chain stability and industrial resilience. The proposal reflects a broader push to position steel as a backbone of Indonesia’s economic growth and infrastructure development.
Key Facts & Background:
- Stephanus Koeswandi, Chairman of IZASI (Indonesia Zinc-Aluminium Steel Industries), advocates for transparent steel import quotas.
- SEAISI data shows Indonesia’s steel consumption in 2024 reached 18.58 million tons, with domestic production at 15.82 million tons.
- Steel imports hit 8.72 million tons, dominated by hot-rolled, cold-rolled, and coated products.
- Steel exports totaled only 5.96 million tons, highlighting a trade imbalance.
- The industry warns that unrestricted imports weaken domestic competitiveness and disrupt supply chains.
- Key sectors reliant on steel include construction, automotive, and manufacturing.
- The Forum Komunikasi Ketahanan Industri Baja Nasional outlined six strategic goals:
- Tightening import quotas
- Moratorium on foreign investment in steel
- Trade protection instruments
- Strengthening non-tariff measures
- Harmonizing tariffs across the steel value chain
- Halting imports of prefabricated steel construction materials
- The forum included leaders from IISIA, ARFI, ARMI, and ISSC, signaling broad industry alignment.
Strategic Insights:
Indonesia’s steel industry stands at a critical juncture, where policy intervention could determine its long-term viability. The call for transparent import quotas reflects a strategic shift from reactive protectionism to proactive industrial governance. By allowing stakeholders to assess import needs in real time, the system could prevent oversupply, stabilize prices, and ensure fair competition. This is especially vital as Indonesia targets 8% economic growth, with steel-intensive sectors like infrastructure and manufacturing playing central roles.
The imbalance between imports and exports not only strains domestic producers but also undermines Indonesia’s ambitions to become a regional industrial hub. Transparent quotas, coupled with harmonized tariffs and non-tariff protections, could help local manufacturers scale up, invest in technology, and meet rising demand. Moreover, the proposed moratorium on foreign investment in steel signals a desire to prioritize national capacity building over external control.
If implemented effectively, these measures could catalyze a renaissance in Indonesia’s steel sector—boosting employment, enhancing value chains, and reinforcing economic sovereignty. The challenge lies in balancing openness with strategic protection, ensuring that Indonesia remains competitive globally while nurturing its industrial core.