ASIATODAY.ID, JAKARTA — Indonesia is drawing strong interest from foreign investors aiming to strengthen the country’s steel industry.
Deputy Minister of Industry Faisol Riza revealed that several investors from Europe, China, and Vietnam have expressed serious intentions to build steel plants in Indonesia.
According to Faisol, the initiative aligns with the government’s strategy to reduce dependence on imported steel, which still dominates the domestic market.
“We are encouraging them to invest directly in Indonesia and establish steel plants here. By doing so, they will also gain access to our domestic market, just like other established industrial players,” Faisol said after attending a hearing session with the House of Representatives in Jakarta on Monday, November 10, 2025.
Currently, around 55% of Indonesia’s steel demand is met through imports, mostly from China, while the utilization rate of local steel plants remains at about 52%.
“Foreign investment is a strategic solution for our steel industry. Out of approximately 20 million tons of annual demand, 11 million tons still come from imports. If investors establish production facilities domestically, this gap can be filled by local supply,” Faisol explained.
He added that several foreign companies have already approached the government to explore investment opportunities in Indonesia’s steel sector.
“We’ve provided detailed information about the opportunities and incentives available. Now it’s a matter of realization. Similar to what we’ve seen in textiles and automotive, the steel sector will likely see more new investors soon,” he noted.
The Indonesian government hopes that growing interest from European and Asian investors will accelerate the revitalization of the national steel industry, strengthen the metal supply chain, and support the country’s broader industrial downstreaming policy.
This initiative is expected to enhance Indonesia’s manufacturing capacity, reduce the steel trade deficit, and create high-value job opportunities. (AT Network)
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