Dependent on steel imports
From an economic point of view, steel is the most important base metal with a global market value of USD 225 billion per year. Indonesia's total consumption of crude steel in 2016 was 14 million tons, while the total domestic production only reached 8 million tons. Therefore, to meet domestic demand, Indonesia has to import 6 million tons of steel products.
Steel demand is expected to rise strongly in Indonesia
The Indonesian Iron & Steel Industry Association (IISIA) said Indonesia is in big need of investment in the steel industry in order to expand the nation's steel production capacity. In the years ahead, steel demand is expected to rise strongly in Indonesia on the back of construction and infrastructure projects. Without investment, Indonesia will become increasingly dependent on steel imports.
Investments in the domestic steel production needed
The government aims to see domestic steel production capacity rise to 12 million tons by 2019, followed by 17 million tons by 2024, and to 25 million tons by 2035. However, this target - set in the National Industry Development Master plan (in Indonesian: Rencana Induk Pembangunan Nasional, or RIPIN) - will require private investor involvement.
Market overview and market opportunities for Swiss companies
Indonesia is a promising market in which many are trying their adventure. The report provided by the Swiss Business Hub Indonesia gives a market overview on the Indonesian steel industry and highlights business opportunities for Swiss companies, over all in the Automotive Manufacturing and Heavy Equipment Sector.
