Overview of the Steel Industry in Indonesia and How to Buy Steel

Brief Introduction of Indonesia

• Indonesia has a population of 273.5 million.
• Capital: Jakarta
• Official languages: Indonesian
• Total area: 1,904,677 km2
• Currency: Indonesian rupia

Economy of Indonesia

Indonesia is the 12th largest economy in Asia and 15th in the world. Indonesia has a GDP of $1.042 trillion.
The largest industries of Indonesia are:

• Petroleum and natural gas.
• Textile and apparel
• Mining
• Footwear
• Plywood
• Rubber
• Chemical fertilizers

The Indonesian economy is divided into

• Indonesia has a population of 273.5 million.
• Services: 44.23% of GDP
• Agriculture: 12.72% of GDP
• Industry: 38.95% of GDP (approximately)

The main importers of Indonesia’s goods are:

• China: 15.1% of total Indonesian exports.
• Japan: 10.8%
• United States: 10.2%
• India: 7.6%
• Singapore: 7.2%
• South Korea: 5.3%
• Malaysia: 5.2%

The main exporters to Indonesia are:

• China: 24.3%
• Singapore: 13.8%
• Japan: 8.76%
• Thailand: 5.72%
• South Korea: 4.97%
• United States: 4.68%
• Malaysia: 4.55%

Steel Use in Indonesia

Given the economic growth of Indonesia, it is an attractive country for steel trade. Indonesia’s steel industry is diverse and includes steel mainly for construction. Construction in Indonesia contributes to about 11.5% of GDP and is the third largest contributor to Indonesia’s economy. In addition, Indonesia is the second most productive and profitable construction market in Asia.

Indonesia consumes over 13 million tons of steel every year, but the country is not able to produce such high demand, so they really heavily on importing about half of their steel from other countries.

Construction Industry

For the purpose of pricing, Indonesia’s local companies typically prefer to import their steel products. The demand for steel in Indonesia is predicted to rise about 50% in the next 3 years for construction. Currently, 78% of Indonesia’s steel purchases are used in the construction sector. Camasteel has supplied materials for the use of construction to many companies.

Automotive Industry

Indonesia has a growing automotive industry and they require much imported steel as it keeps growing. Currently, 8% of Indonesia’s steel is used in the automotive industry, which is the second highest, behind construction. The use of steel in manufacturing automobiles allows for more safety and strength of the automobile.

Indonesia Sea ports and Trading

ndonesia is accessible by both land and sea.
For international trading, the main sea ports are:

• Port of Tanjung Priok, Jakarta
• Port of Cirebon, West Java
• Port of Merak, Banten

For importing the good, Camasteel uses the largest port of Tanjung Priok.

What Steel does Indonesia import?

According to the latest trade data, Indonesia imports

• $3.35 billion in flat steel products
• $2.8 billion in semi-finished steel products
• $1 billion in long products
• $312 million in pipe and tube steel products.

They include steel such as:

• Hot-rolled steel sheets
• Cold-rolled steel sheets
• Steel Bars
• Steel Rods
• Steel Beams

 



 

• Seamless steel pipe 
• Galvanized steel pipe

 



 

• Square steel tube  
• Rectangular steel tube
• Forged steel products

What regulations are there on importing steel in Indonesia?

Steel alloy importers need to have a license as an Importer Manufacturer or Registered Importer from the Trade Ministry. There is also a requirement of verification. Some of the affected steel products may include:

• “Flat rolled products that are [grain oriented or coated with zinc] of a width of 600 mm or more”
• “Bars and rods, hot rolled, in irregular wound coils, of other alloy steel”
• “Other bars and rods of other alloy steel; angles, shapes, and sections, of other alloy steel; hollow drill bars and rods, of alloy or nonalloy steel”

Why should Indonesia import steel?

1. Availability - Indonesia is the world’s 10th largest steel importer. They import more than 11.6 million tons of steel each year and they are usually in high demand.

2. Steel Cost – Indonesia spends over $10 billion last year in steel import consumption. They tend to import steel because of the competitive prices.

3. Steel Quality – Indonesia is taking better precaution in purchasing high-quality steel.

Where can I buy steel in Indonesia?

If you’re looking to buy small amounts of steel, there are local options more available for convenience. However, if you are looking to import in bulk and achieve cost savings, Camasteel has been exporting steel to clients in Indonesia. Feel free to contact us at [email protected] or WhatsApp us at +86-131-2037-9271 for a FREE quotation.