While Indonesia’s steel mills pumped out over 13 million tons last year to build the nation’s future, the complex story behind the numbers reveals an industry sprinting to keep pace with its own soaring ambitions and demands.
Key Takeaways
- Indonesia's crude steel production in 2022 was 13.7 million metric tons, up 5.2% from 2021.
- Krakatau Steel produced 2.4 million tons of crude steel in 2022.
- Flat steel products production reached 7.8 million tons in Indonesia during 2022.
- Indonesia's installed crude steel production capacity stood at 19.5 million metric tons as of 2023.
- Krakatau Steel's crude steel capacity is 5.2 million tons per annum.
- PT Gunung Raja has a billet production capacity of 1.5 million tons/year.
- Indonesia's apparent steel consumption was 14.8 million tons in 2022.
- Domestic steel use in construction sector was 7.2 million tons 2022.
- Automotive industry consumed 1.9 million tons of steel in Indonesia 2022.
- Indonesia exported 2.3 million tons of steel products in 2022.
- HRC exports from Indonesia reached 1.1 million tons in 2022.
- Rebar exports totaled 0.8 million tons to ASEAN markets 2022.
- Indonesia imported 8.9 million tons of steel in 2022.
- HRC imports dominated at 5.2 million tons Indonesia 2022.
- China supplied 4.1 million tons steel to Indonesia 2022.
Indonesia's steel industry grew steadily in 2022 with rising production but still relied heavily on imports.
Capacity
- Indonesia's installed crude steel production capacity stood at 19.5 million metric tons as of 2023.
- Krakatau Steel's crude steel capacity is 5.2 million tons per annum.
- PT Gunung Raja has a billet production capacity of 1.5 million tons/year.
- Indonesia's hot-rolled coil (HRC) capacity reached 12.4 million tons in 2022.
- New EAF capacity additions totaled 2.1 million tons in Indonesia 2022-2023.
- PT HKM Steelworks slab capacity is 1.2 million tons annually.
- Long steel products capacity in Indonesia is 8.7 million tons as of 2023.
- Galvanized steel capacity expanded to 3.2 million tons in 2023.
- Cold-rolled steel capacity utilization was 65% in Indonesia 2022.
- PT ICSG long products capacity is 1.8 million tons per year.
- Indonesia plans to add 4 million tons steel capacity by 2025.
- Blast furnace capacity in Indonesia totals 10.8 million tons.
- Stainless steel capacity is 0.8 million tons in Indonesia 2023.
- Wire rod capacity stands at 2.5 million tons annually Indonesia.
- Rebar capacity utilization rate was 78% in 2022 Indonesia.
- New mini-mill capacity of 1.4 million tons commissioned in 2023.
- Structural steel capacity is 1.6 million tons per annum Indonesia.
- Seamless pipe capacity totals 0.5 million tons in Indonesia.
- DRI plant capacity contributes 2 million tons to steelmaking Indonesia.
- Automotive steel capacity specialized at 1.2 million tons 2023.
- Flat steel downstream capacity is 15.1 million tons Indonesia.
- Krakatau Posco HRC capacity is 3 million tons/year.
- Overall capacity utilization in steel industry was 70% in 2022.
- Construction steel capacity dominant at 9.2 million tons Indonesia.
- Electrical steel capacity niche at 0.2 million tons 2023.
Capacity Interpretation
While Indonesia's steel industry boasts a mighty 19.5 million ton capacity, its 70% utilization rate suggests it's more of a flex than a full-blown forge, with Krakatau Steel flexing hardest at a quarter of the entire national muscle.
Consumption
- Indonesia's apparent steel consumption was 14.8 million tons in 2022.
- Domestic steel use in construction sector was 7.2 million tons 2022.
- Automotive industry consumed 1.9 million tons of steel in Indonesia 2022.
- Infrastructure projects drove 3.1 million tons steel demand 2022.
- Apparent consumption per capita steel in Indonesia 52 kg in 2022.
- Flat products consumption totaled 8.4 million tons in 2022 Indonesia.
- Long products domestic use was 6.3 million tons FY2022.
- HRC consumption grew 6% to 6.7 million tons in 2022.
- Galvanized sheet use in manufacturing 2.8 million tons 2022.
- Rebar demand from construction hit 4.1 million tons 2022.
- Wire rod consumption for industry 1.5 million tons Indonesia 2022.
- Stainless steel consumption rose to 0.6 million tons in 2022.
- Cold-rolled products use 2.2 million tons domestic 2022.
- Steel for appliances sector consumed 0.9 million tons 2022.
- Oil & gas sector steel use 0.7 million tons Indonesia 2022.
- Shipbuilding consumed 0.4 million tons steel plates 2022.
- Consumption growth forecasted at 5.5% for 2023 Indonesia steel.
- Construction share of steel use 49% in Indonesia 2022.
- Manufacturing sector steel demand 3.8 million tons 2022.
- Infrastructure steel consumption up 12% YoY to 3.5 mt 2022.
- Electrical equipment steel use 1.1 million tons Indonesia 2022.
Consumption Interpretation
In Indonesia, steel is the nation's skeleton—with nearly half of its 14.8 million ton appetite dedicated to construction's relentless growth, while its industrial muscles, from automotive to appliances, flex with the rest.
Exports
- Indonesia exported 2.3 million tons of steel products in 2022.
- HRC exports from Indonesia reached 1.1 million tons in 2022.
- Rebar exports totaled 0.8 million tons to ASEAN markets 2022.
- Wire rod exports grew 15% to 0.4 million tons in 2022.
- Flat steel products exports 1.4 million tons Indonesia 2022.
- Long products exports to Philippines 0.3 mt in 2022.
- Galvanized exports hit 0.5 million tons from Indonesia 2022.
- Steel pipe exports 0.2 million tons to Middle East 2022.
- Krakatau Steel exports volume 0.6 million tons in 2022.
- Stainless steel exports 0.1 million tons Indonesia 2022.
- Top export destination US took 0.2 mt steel from ID 2022.
- Export value of steel products USD 2.1 billion in 2022.
- HRC slab exports 0.3 million tons to Vietnam 2022.
- Rebar to Australia 0.15 mt from Indonesia 2022.
- Cold-rolled exports 0.25 million tons 2022 Indonesia.
- Structural steel exports grew 10% to 0.18 mt 2022.
- Steel billet exports 0.35 million tons Indonesia 2022.
- Export share of production 16% in Indonesia steel 2022.
- ASEAN exports totaled 1.2 million tons steel 2022 ID.
- India imported 0.1 mt steel from Indonesia 2022.
- Export growth 7% YoY for steel products 2022 Indonesia.
- Semi-finished exports 0.4 mt Indonesia to global 2022.
- Finished steel exports 1.9 mt total Indonesia 2022.
Exports Interpretation
While Indonesia may not yet be the "Steel Titan of the Tropics," its 2022 export portfolio reveals a savvy and diversifying player, strategically feeding high-demand ASEAN construction with rebar, flexing into premium markets with galvanized and cold-rolled products, and cleverly moving its commodity HRC and slabs to regional neighbors—all adding up to a respectable and growing $2.1 billion global steel business.
Imports
- Indonesia imported 8.9 million tons of steel in 2022.
- HRC imports dominated at 5.2 million tons Indonesia 2022.
- China supplied 4.1 million tons steel to Indonesia 2022.
- Hot-rolled plate imports 1.3 million tons in 2022 ID.
- Cold-rolled coil imports totaled 1.8 mt Indonesia 2022.
- Stainless steel imports 0.9 million tons from Japan 2022.
- Galvanized imports 1.1 million tons Indonesia FY2022.
- Scrap steel imports for EAFs 4.5 million tons 2022.
- Pig iron imports 2.2 million tons to support prod 2022.
- Wire rod imports declined 5% to 0.6 mt 2022 ID.
- Semi-finished steel imports 1.4 million tons 2022.
- South Korea steel supply 1.2 mt to Indonesia 2022.
- Import value steel products USD 7.8 billion 2022 ID.
- Rebar imports minimal at 0.2 mt due to local prod 2022.
- Alloy steel imports 0.4 mt for specialty uses 2022.
- Electrical steel sheets imports 0.15 mt Indonesia 2022.
- Import dependency for HRC was 81% in Indonesia 2022.
- Vietnam supplied 0.8 mt steel to ID market 2022.
- India steel imports to Indonesia 0.5 mt 2022.
- Import growth slowed to 3% YoY for steel 2022 ID.
- Taiwan contributed 0.7 mt HRC imports to Indonesia 2022.
Imports Interpretation
While Indonesia's steel appetite is voracious, gobbling up 8.9 million tons of imported metal in 2022, the local industry's bite remains frustratingly weak, relying on imports for a staggering 81% of its hot-rolled coil needs alone.
Production
- Indonesia's crude steel production in 2022 was 13.7 million metric tons, up 5.2% from 2021.
- Krakatau Steel produced 2.4 million tons of crude steel in 2022.
- Flat steel products production reached 7.8 million tons in Indonesia during 2022.
- Long steel products output was 6.2 million tons in 2022 across Indonesian mills.
- In Q4 2022, monthly crude steel production averaged 1.15 million tons in Indonesia.
- Gunung Raja steel mill produced 1.2 million tons of billets in 2022.
- Indonesia's semi-finished steel production hit 4.5 million tons in 2021.
- Hot-rolled coil (HRC) production increased to 5.1 million tons in 2023 Q1.
- Rebar production totaled 3.9 million tons in Indonesia for FY2022.
- Wire rod output from Indonesian producers was 1.8 million tons in 2022.
- Crude steel production capacity utilization rate in Indonesia was 72% in 2022.
- PT HKM Steelworks produced 0.8 million tons of steel slabs in 2022.
- Indonesia's electric arc furnace (EAF) steel production was 3.2 million tons in 2022.
- Blast furnace steel output reached 9.5 million tons in Indonesia 2022.
- Stainless steel production in Indonesia was 0.45 million tons in 2022.
- Galvanized steel sheet production totaled 2.1 million tons in 2022.
- Cold-rolled coil production was 1.7 million tons in Indonesian market 2022.
- Structural steel beams production hit 0.9 million tons in 2022.
- Indonesia's steel billet production reached 3.4 million tons in 2023 H1.
- Scrap-based steel production grew 8% to 4.1 million tons in 2022.
- PT ICSG's steel production was 1.1 million tons of long products in 2022.
- Overall steel product output increased 4.7% YoY to 14.2 million tons in 2022.
- Mini-mill production contributed 35% of total steel in Indonesia 2022.
- High-strength steel production for automotive was 0.6 million tons in 2022.
- Indonesia's pig iron production supported 10.2 million tons steelmaking in 2022.
- Direct reduced iron (DRI) usage in steel prod was 1.2 million tons 2022.
- Alloy steel production totaled 0.7 million tons in Indonesia FY2022.
- Seamless pipe steel production was 0.3 million tons in 2022.
- Indonesia's steel production per capita was 50 kg in 2022.
- Flat product steel production share was 55% of total in 2022 Indonesia.
Production Interpretation
Indonesia's steel industry spent 2022 flexing its muscles with a 5.2% rise in crude steel production, yet it still had plenty of room in the tank, operating at just 72% capacity and leaving about a quarter of its potential strength untapped.
Sources & References
- Reference 1WORLDSTEELworldsteel.orgVisit source
- Reference 2KRAKATAUSTEELkrakatausteel.comVisit source
- Reference 3IISIiisi.or.idVisit source
- Reference 4BPSbps.go.idVisit source
- Reference 5GUNUNGRAJAgunungraja.comVisit source
- Reference 6KEMENPERINkemenperin.go.idVisit source
- Reference 7STAINLESS-STEEL-WORLDstainless-steel-world.netVisit source
- Reference 8HKMSTEELWORKShkmsteelworks.comVisit source
- Reference 9ISSFissf.comVisit source
- Reference 10ICSGicsg.co.idVisit source
- Reference 11KRAKAUPOSCOkrakauposco.comVisit source
- Reference 12OECoec.worldVisit source