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2026-11-05T09:08:29

Indonesia Uses 18 Million Tonnes of Steel: Krakatau Posco Still Imports Iron Ore

印尼钢材消费1,800万吨：Krakatau Posco铁矿石仍全靠进口

Indonesia steel consumption is now about 18 million tonnes, but part of that demand is met by Chinese products and domestic producers say they are under pressure. This was said by Haryanto, commercial director of PT Krakatau Posco, at Minerba Convex 2026 in Jakarta on 4 November 2026. He also revealed that all of the mill’s iron ore is still imported, so local steel raw-material costs remain closely tied to global prices and the exchange rate.

Key Facts

What Krakatau Posco said

According to Warta Ekonomi, Haryanto said the national steel market is supplied partly by domestic output and partly by Chinese products. He described the domestic industry as "suffering quite a lot" today. Krakatau Posco produces about 3 million tonnes a year, roughly one sixth of the national consumption he cited.

Raw materials still depend on imports

To make that much steel, the mill needs about 5 million tonnes of iron ore and 2 million tonnes of metallurgical coal every year. All the iron ore is imported because domestic ore processing is not yet well developed. Haryanto sees this as an opportunity for local mining companies to replace imports.

For metallurgical coal, about 30–35% already comes from Central Kalimantan, especially Lamandau and Murung Raya. Limestone comes from Rembang in Central Java and Padalarang in West Java. The mill also needs about 30,000 tonnes of ferromanganese a year, yet no processing industry exists in Indonesia even though manganese ore is available in East and West Nusa Tenggara.

Demand will rise toward 2030

Haryanto expects the steel industry’s raw-material needs to rise by about 10–20% by 2030 compared with today, partly due to additional steel mills in Morowali, Central Sulawesi. He asked the government to build ports and roads in mining areas so that domestic supply becomes more competitive.

Why this matters to building-material buyers

Steel is the base of many construction products: rebar, light steel framing, corrugated roofing, pipes and sections. If iron ore is still imported, local steel costs follow world ore prices, freight and the rupiah. At the same time, cheap imports can make market prices move unevenly between local and imported brands.

The issue also links to existing trade measures, such as anti-dumping duties on Chinese galvanised steel and the planned mandatory SNI for light steel and roofing. These aim to protect quality and domestic industry, but can also affect product choice and shelf prices.

Tips for buying steel products for a project

  • Check the SNI mark and mill label on rebar, light steel and roofing; do not compare only price per bar or sheet.
  • Measure thickness and weight with simple tools on delivery, as cheap products are often thinner.
  • Ask for written prices with a validity date: steel prices can move with the exchange rate and raw materials.
  • Buy in project stages so steel is not stored too long on a damp site.

homeX is an Indonesian one-stop building-materials and furniture platform with a showroom, warehousing and delivery. We help contractors and homeowners compare steel and roofing products and schedule deliveries to match the project timeline.

Indonesia steel consumption: related articles and products

FAQ

How much steel does Indonesia consume? According to Krakatau Posco, about 18 million tonnes, part of it supplied by Chinese products.

How much does Krakatau Posco produce? About 3 million tonnes of steel a year.

Where does Krakatau Posco get its iron ore? All of it is still imported; the company is open to local mining suppliers.

Will rebar prices rise? The presentation gave no official figure. Because raw materials are imported, prices follow global markets and the exchange rate, so ask for written quotes.

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Sources: Warta Ekonomi, 4 Nov 2026, Krakatau Posco presentation at Minerba Convex 2026