Indonesian steel industry urges government to curb imports
Steelmakers also raised gas supply constraints, while reporting that domestic capacity utilisation remained at 43–57 per cent.
The Indonesian Iron and Steel Industry Association (IISIA) called for tighter controls on imported steel during talks with Industry Minister M Sarmuji in Jakarta on 14 October 2026. The association also said insufficient gas supplies were holding back domestic steel production.
Vice-chairman Ismail Mandry put steel imports at 7 million tonnes through August 2026, compared with 8 million tonnes annually in 2024 and 2025. He said the 2026 volume would increase further by year-end, but supported allowing imports of products that domestic manufacturers could not make.
Chairman Willgo Zainar told reporters after the meeting that Indonesian steelmakers were operating at 43–57 per cent capacity utilisation, leaving room to increase output. He said the industry faced pressure from imports originating in China as well as other countries.
Willgo estimated worldwide surplus steel production at around 640 million tonnes. He argued that trade barriers confronting China in the European Union and the United States would push Chinese steel into the Indonesian market, and sought protection through coordination across ministries and agencies.
Ismail said IISIA represented 189 companies with annual production of 18 million tonnes. Industry ministry official Setia Diarta said the ministry would take in the association's concerns and work with other ministries to find solutions.
