Indonesia Steel Imports Hit 7 Million Tonnes by August 2026: What It Means for Rebar Prices
Steel imports in Indonesia reached 7 million tonnes by August 2026 and the government is weighing protection, which could affect rebar and light steel prices.
Indonesia's steel industry is once again asking for protection from a surge of imported products. At a meeting between Industry Minister Muhammad Sarmuji and the board of the Indonesian Iron and Steel Industry Association (IISIA) in Jakarta on Wednesday, 14 October 2026, it emerged that steel imports had already reached about 7 million tonnes by August 2026. The government is now weighing tariff and non-tariff instruments. Buyers of rebar, light steel, hollow sections and coated steel for building projects should watch this closely, as the policy direction could affect supply and prices in the domestic market.
Steel mill utilisation at just 43–57 percent
IISIA chairman Willgo Zainar said utilisation in the national steel industry is still around 43–57 percent, meaning a large share of capacity is idle. Import pressure, he said, comes not only from China but also from other countries, against a backdrop of global steel overcapacity estimated at around 640 million tonnes, including about 120 million tonnes from China.
IISIA vice chairman Ismail Mandry added that the association has 189 member companies producing around 18 million tonnes a year. By comparison, steel imports were about 8 million tonnes a year in 2024–2025, while by August 2026 alone they had reached 7 million tonnes. IISIA stresses that it is not against imports, but wants them controlled, especially for products that can already be made domestically. The association also pointed out that steelmakers have so far used only about 60 percent of their quota under the special gas price scheme (HGBT).
Government stance: protection plus competitiveness
Minister Sarmuji described steel as a strategic industry that needs protection, through both tariff and non-tariff instruments. But he stressed that protection alone is not enough; the industry must also improve efficiency and productivity to withstand global competition. Setia Diarta, the ministry's director general for metal, machinery, transport equipment and electronics industries, said his office would coordinate with other ministries and agencies to follow up on the issues raised. No specific new tariff has been announced so far.
Global steel prices are trending up
Abroad, IISIA's weekly summary dated 12 October 2026 noted that global steel markets are on an upward price trend, driven by high production costs, improving demand and limited supply. Producers in Vietnam and Taiwan raised hot-rolled coil (HRC) prices; Formosa Ha Tinh's offer was equivalent to about US$543 per tonne CIF southern Vietnam. In the United States, Nucor raised its HRC spot price to US$1,230 per metric tonne. Firmer global prices combined with possible domestic protection suggest that room for cheap imported steel is likely to narrow.
What should rebar and light steel buyers do?
First, list your needs for rebar, wire mesh, hollow sections and light steel by work stage, then request quotations with a clear price validity period. Second, prioritise SNI-certified products and check diameter or thickness markings, because structural steel is a matter of building safety. Third, for long projects, consider phased purchases agreed in advance so you are less exposed to price swings. Fourth, store steel in a dry place, raised off the ground, so it does not rust before installation.
Where homeX fits in
As Indonesia's one-stop integrated service platform for building materials and furniture, homeX offers a showroom where products can be seen in person, warehousing with visible stock, and delivery from Tangerang. We are expanding our warehousing and delivery network and using digital tools to help plan stock, while on-site installation is handled by partner tukang (skilled builders). For rebar, hollow sections and light steel, our team can help set up delivery schedules for each project stage so materials arrive in the order the work needs them.
FAQ
How much steel has Indonesia imported in 2026?
According to IISIA, steel imports had reached about 7 million tonnes by August 2026, close to the 2024–2025 annual average of around 8 million tonnes.
Is there already a new tariff on imported steel?
Not yet. The government has only said it is considering tariff and non-tariff instruments, together with efforts to raise industry competitiveness.
Will rebar prices definitely rise?
That cannot be confirmed. Prices depend on many factors, but firmer global prices and talk of protection mean buyers should plan purchases early.
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Sources: ANTARA News, 14 Okt 2026; Bisnis.com, 14 Okt 2026; IISIA Weekly Update #41, 12 Okt 2026