Indonesia is taking a major step toward reinforcing its steel industry ecosystem. The Ministry of Industry (Kemenperin) believes the new Continuous Galvanizing Line (CGL) 2 facility in Purwakarta, West Java, will enhance competitiveness, create jobs, and reduce reliance on imports. With advanced technology and a focus on sustainability, the project is expected to boost both domestic value creation and global market reach.
Key Facts & Background
Project Overview:
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- The CGL 2 facility is developed by PT Tata Metal Lestari in Purwakarta, West Java.
- Uses advanced technology from Tenova, Italy, ensuring efficiency and high-quality production.
- Designed to strengthen the upstream-to-downstream steel ecosystem in Indonesia.
Technological Features:
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- CGL technology applies continuous zinc-magnesium and zinc-aluminium-magnesium coating.
- Extends steel lifespan up to four times longer compared to conventional methods.
- Equipped with hydrogen-based burners, reducing emissions and aligning with green industry principles.
Production Capacity:
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- CGL 2 will produce 250,000 tons of coated steel annually.
- Combined with CGL 1 in Cikarang, total production reaches 500,000 tons per year.
- Long-term roadmap aims for 2.5 million tons installed capacity within the next decade.
Economic Impact:
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- Expected to create jobs and empower local economies.
- Supports Indonesia’s P3DN program (Domestic Product Utilization) by delivering “Made in Indonesia” products with global standards.
- PT Tata Metal Lestari already exports coated steel to 25 countries, including the U.S. and Europe.
Government Support:
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- Kemenperin backs the project with policies such as trade remedies, mandatory SNI standards, fiscal incentives, and gas price facilities (HGBT).
- Emphasis on green industry principles to ensure sustainability.
Strategic Insights
The launch of CGL 2 represents more than just an expansion of production capacity; it signals Indonesia’s determination to build a resilient steel industry capable of competing globally. By integrating advanced coating technology and low-emission processes, the project aligns industrial growth with sustainability goals. This dual focus on competitiveness and environmental responsibility strengthens Indonesia’s position in international markets, particularly in regions with strict quality and sustainability standards.
At the same time, the project highlights the importance of midstream industries in connecting upstream raw materials with downstream applications. A stronger midstream sector reduces import dependence, stabilizes supply chains, and enhances domestic value creation. If Indonesia continues to support such initiatives with coherent policies and infrastructure, the steel industry could become a cornerstone of national industrial strategy, drive economic growth while reinforcing the country’s commitment to sustainable development.