November 10, 2025 | 11:14 pm
TEMPO.CO, Jakarta - Deputy Minister of Industry Faisol Riza claims that many foreign investors are interested in investing in Indonesia's steel industry. He said it's almost every day that foreign managements pay a visit to the Ministry of Industry and the Ministry of Investment and Downstreaming to inquire about the investment process in Indonesia.
But Faisol stopped short of detailing the number of keen investors. "There are several countries from Europe, China, Vietnam, that want to relocate factories," he said after the public hearing with House Commission VI on Monday, November 10, 2025.
Faisol said foreign companies wanting to compete directly in the domestic market had to build factories in Indonesia. This method has also been implemented by various foreign companies expanding their business in the country.
If they only import to Indonesia, Faisol said, of course, there are regulations to comply with. However, investment is a real solution to meet domestic needs.
"At the same time, besides importing, they can also expand to the global market through exports. We will support them with various facilities," he added.
At the public hearing, Faisol revealed that the steel industry in Indonesia is ranked 14th with a total production of 18 million tons in 2024, up from 2023 figure with 16 million tons.
Meanwhile, the national steel industry's average utilization rate is only 52.70 percent. The local steel industry is now competing with steel imports from China, which dominate up to 55 percent of national demand.
"So, the national steel industry is idle because its products are not absorbed by the market," said Faisol.
The Ministry of Industry is still seeking solutions to improve domestic steel absorption. Other ministries, such as the Ministry of Investment and Downstreaming and the Ministry of Finance, as the overseers of goods entry and exit, will be involved in addressing this issue.
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