ASIATODAY.ID, JAKARTA — In the midst of the United States’ 19% import tariff on Indonesian steel products, Tatalogam Group, through PT Tata Metal Lestari, in collaboration with Krakatau Steel, has successfully exported 10,000 tons of coated steel to the U.S., valued at USD 12.6 million or approximately IDR 205.5 billion, on Friday, July 18, 2025.
The ceremonial export release was officiated by Indonesia’s Minister of Industry, Agus Gumiwang Kartasasmita, at Tanjung Priok Port, North Jakarta.
According to the Minister, this export marks the resilience of Indonesia’s manufacturing sector, particularly the steel industry, amidst global trade pressure and the enduring Trump-era protectionist tariffs.
“Today’s shipment is the fourth batch to the U.S., and it proves that our manufacturing—especially our steel industry—is highly resilient and globally competitive,” said Agus.
Agus explained that despite enduring tariff fluctuations—including a flat 50% import duty under Section 232, imposed across all countries—Tatalogam Group continues to gain traction in the U.S. market.
“The trust that American buyers place in our steel products is something we should be proud of. It serves as an example for other manufacturers that resilience is key in navigating global trade dynamics,” he added.
The synergy between Tatalogam Group and Krakatau Steel, which provides the raw steel materials, was cited as a crucial factor in the success of this shipment.
“This export tells a strong story: that Indonesia’s steel industry ecosystem is increasingly robust,” said Agus.
Tatalogam and Krakatau Steel Remain in High Demand in the U.S.
Stephanus Koeswandi, Vice President of Tatalogam Group, noted that even with steep tariffs, U.S. consumers continue to favor Indonesian steel products due to their quality and reliability.
“With the reciprocal tariff reduced from 32% to 19%, we aim to maximize our export gains and solidify our market presence in the U.S.,” Stephanus stated.
Krakatau Steel President Director Muhamad Akbar added that these challenges only push domestic steel producers to innovate and boost competitiveness.
“The 19% tariff, combined with sectoral duties, forces us to be more efficient and globally oriented,” he said.
Minister Sets Goal for Indonesia to Enter Top 10 Global Steel Producers
Minister Agus also declared Indonesia’s ambition to become one of the top 10 global crude steel producers within the next three to four years. As of 2024, Indonesia ranked 14th globally with a production volume of 17 million tons—a nearly 100% increase compared to 8.5 million tons in 2019.
The country’s current installed capacity stands at 21 million tons, with projections to reach 27 million tons by 2029.
“We are optimistic that Indonesia’s ranking will rise steadily as our steel sector becomes more competitive on the global stage,” said Agus.
The manufacturing industry continues to be the driving force behind Indonesia’s export performance. In 2024, it recorded USD 196.5 billion in exports—74.25% of total national exports and a 5.11% increase from 2023.
In Q1 of 2025 alone, the sector posted a USD 10.4 billion trade surplus. Data from World Visualized places Indonesia as the third-largest trade surplus holder globally, trailing only China (USD 103.22 billion) and Germany (USD 17.8 billion).
“These achievements counter the narrative of deindustrialization. Our industrial structure remains strong from upstream to downstream,” asserted the Minister.
To maintain momentum, the Indonesian government has implemented a range of strategic policies, including: Enforcement of trade remedies and mandatory Indonesian National Standards (SNI), Provision of Special Natural Gas Pricing (HGBT) for industries, Prioritization of domestic products in government procurement, Fiscal incentives for downstream industrialization, and Promotion of green industry principles.
“These measures aim to ensure that domestic steel production continues to grow sustainably while remaining competitive both at home and abroad,” Agus concluded. (AT Network)
Follow Us at Google News and WA Channel