Reported by Jakarta post on Feb 8th, 2018,the data released by the Indonesian Iron and Steel Association shows Indonesia imported 6430000 tons steel in 2017, which is 48% of total steel consumption in 2015 and 2016, Indonesia imported steel 6850000 tons in 2015 and 6490000 tons in 2016, the Indonesia is the one of world’s five largest importer of iron and steel.
The current annual steel consumption of Indonesia is 1340000 ton, which is expected to be 23000000 tons by 2025. The chairman of the Indonesian Iron and Steel Association, Plono said that Indonesia's normal imports should be 30% of the total consumption, but iron and steel production is not enough and has to be imported.
In order to reduce the dependence on imports, the Ministry of industry to intensify the domestic iron and steel process, plans to build 3 large steel production plant respectively in southern Kalimantan and Sura Sulawesi, a total investment of $14 billion 890 million.
As Indonesia industry minister Al Lang said, the construction of three production plants are joint ventures with foreign investors, and South Korea intends to Pohang iron and steel company production of carbon steel, planned production capacity from the current annual output of 450 thousand tons annual output reached 10 million tons in 2025 to gradually improve; intends to cooperate with Beijing Shenwu Thermal Energy Technology Co Ltd to build an annual output of 3 million tons of cold-rolled plate and Shanghai project; Dingxin Investment Group Limited cooperation in the construction of an annual output of 2 million 500 thousand tons of hot rolled plate, 500 thousand tons and 3 million 500 thousand tons of cold rolled carbon steel project.