Indonesian Steel Industry Faces Dual Challenges

Export Growth vs Domestic Pressure

The Indonesian steel industry is navigating through complex dynamics as export performance shows significant growth while the domestic market faces challenges from imported products. According to data from the Central Statistics Agency (BPS), Indonesian iron and steel exports recorded a 12.12% year-on-year increase to $23.58 billion by October 2025. The export volume also demonstrated robust growth, rising 13.04% to 19.50 million tons during the same period.

Global Demand vs Local Competition

The strong export performance reflects the global community's continued demand for Indonesian steel products. However, this positive export trend does not eliminate the pressures faced in the domestic market. The local steel market is currently saturated with imported steel products, creating significant competition for domestic producers.

Market Dynamics and Future Outlook

The dual challenge of maintaining export growth while managing domestic market pressures requires strategic planning from Indonesian steel producers. The industry must balance capitalizing on global demand while protecting their domestic market share from increasing imports.