Indonesian metals industry growth outpaces other sectors

The Ministry of Economic Coordination noted significant growth in the domestic metal industry, outperforming other sectors due to further processing of raw materials.

“The metal industry grew by 11-18 percent in the first quarter, far outpacing other sectors. Metal exports increased from 8.74 percent to 16.74 percent. This achievement is certainly due to downstream processing,” said Coordinating Minister for Economic Affairs Airlangga Hartarto at a press conference in Jakarta on Wednesday, July 10, 2024.

Airlangga highlighted industry milestones, noting the success of Indonesia, which exported 130 wind turbines to New York in the US.

“These are the first wind turbines to be installed north of Long Island, 15 to 20 miles offshore, with a planned capacity of about 2.1 gigawatts. This is a breakthrough because they are manufactured in Batam, Indonesia,” he said.

In addition to wind turbines, Indonesia also exports steel structures to Sydney, Australia and New Zealand.

“These are extraordinary breakthroughs, showing that our steel is strong and appreciated in many countries around the world,” Airlangga said.

The minister cited state-owned steelmaker Krakatau Steel and South Korean steelmaker POSCO as having developed a plan to increase steel production from 10 million tons to 20 million tons. Demand for steel is also expected to rise to about 18-19 million tons.

“Production usually has to precede demand, otherwise the gap will be filled by imports, which are less desirable,” Airlangga said.

This impressive growth and strategic planning underscore Indonesia’s strong position in the global metals industry and its commitment to expanding production and export opportunities.