ASIATODAY.ID, PURWAKARTA — Indonesia’s manufacturing sector continues to attract major capital inflows as PT Tata Metal Lestari announced a IDR 1.5 trillion (approximately US$95 million) investment to build a new Continuous Galvanizing Line (CGL 2) steel facility in Purwakarta, West Java.
The project, located at the company’s Sadang plant, will deploy advanced coating technology from Italy-based Tenova, making it the first facility of its kind in Southeast Asia.
The technology enables the production of high-performance coated steel with a lifespan up to four times longer than conventional steel products, while also reducing environmental emissions.
“This IDR 1.5 trillion investment in CGL 2 represents a significant technological leap. It is the first zinc magnesium and zinc aluminium magnesium coating facility in Southeast Asia, capable of extending steel durability up to four times,” said Stephanus Koeswandi, Vice President of Operations at PT Tata Metal Lestari, during the project’s groundbreaking ceremony on Monday, January 26, 2026.
Operations Targeted for Late 2026
The new facility is expected to begin commissioning in December 2026 and is projected to create around 350 jobs, contributing to regional economic growth in Purwakarta and surrounding areas.
Tata Metal Lestari currently operates a galvanizing line in Bekasi with an annual production capacity of 250,000 tonnes. Once CGL 2 becomes operational, total capacity will increase to 500,000 tonnes per year, with a long-term goal of reaching 2.5 million tonnes within the next decade.
Strong Export Orientation, Europe in Focus
Approximately 30–40% of the company’s output is exported to 25 countries, including the United States, Australia, Canada, Latin America, and Southeast Asia.
The company is now preparing to expand into European markets, supported by growing demand for low-emission steel products and potential trade cooperation between Indonesia and the European Union.
High Local Content Supports Domestic Industry
Tata Metal Lestari’s coated steel products achieve a local content level of 62–64%, with 80–85% of raw materials sourced domestically, including supplies from state-owned steelmaker Krakatau Steel. This reinforces Indonesia’s domestic supply chain and reduces reliance on imports.
Indonesia’s Steel Industry Gains Global Momentum
According to the World Steel Association, Indonesia ranked 14th globally in crude steel production in 2024, producing 17 million tonnes, nearly doubling its output since 2019. Domestic steel consumption is also rising, increasing from 15.1 million tonnes in 2018 to 17.6 million tonnes in 2023, and is projected to reach 19.6 million tonnes by 2025.
Indonesia’s Ministry of Industry expects demand to be driven largely by industrial estates, special economic zones, and major connectivity infrastructure projects, positioning steel as a cornerstone of the country’s industrialisation and logistics expansion.
“The expansion of production capacity through CGL 2 supports downstream industrial development and strengthens Indonesia’s industrial self-sufficiency,” said Dodiet Prasetyo, Director of Metal Industry at the Ministry of Industry. (AT Network)
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