The Indonesia steel market size reached USD 12,587.62 Million in 2024. The market is projected to reach USD 16,582.52 Million by 2033, exhibiting a growth rate (CAGR) of 3.11% during 2025-2033. The market is driven by rapid infrastructure development, fueled by government projects like Nusantara and ongoing urbanization. The growing automotive and manufacturing industries increase demand for quality steel in vehicles, machinery, and construction. Additionally, government policies promoting import substitution, local content requirements, and investment incentives support domestic steel production. Moreover, strong construction demand, industrial growth, and favorable regulations are transforming Indonesia into a key regional steel hub, enhancing self-sufficiency and attracting both local and foreign investment is aiding the Indonesia steel market share.
Report Attribute
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Key Statistics
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Base Year
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2024 |
Forecast Years
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2025-2033
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Historical Years
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2019-2024
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Market Size in 2024 | USD 12,587.62 Million |
Market Forecast in 2033 | USD 16,582.52 Million |
Market Growth Rate 2025-2033 | 3.11% |
Infrastructure Development and Urbanization
Indonesia's fast urbanization and large infrastructure drive are among the primary drivers of steel consumption. The government's "National Strategic Projects" and construction of the new capital, Nusantara, necessitate huge amounts of steel for bridges, roads, ports, railways, and skyscrapers. Importantly, Nusantara's initial construction phase alone would use 0.5–0.7 million tonnes of steel, with approximately 1 million tonnes for every following phase. Expanding urbanization also fuels demand for residential and commercial building, fueling long and flat steel product consumption. Public expenditure, private investment, and large doses of foreign direct investment by countries such as China and Japan finance the infrastructure outlays. Such projects guarantee consistent, long-term demand for steel, bolstering local production as well as imports. Moreover, the growth of the middle class puts pressure on housing and transport markets, hence infrastructure and urban development sustaining Indonesia's steel market growth.
Automotive and Manufacturing Industry Growth
Indonesia’s automotive and manufacturing sectors are pivotal in driving steel consumption. As the largest car market in Southeast Asia, Indonesia’s demand for automotive-grade steel has surged alongside rising vehicle ownership. The government's focus on becoming a regional automotive manufacturing hub, supported by incentives for electric vehicle (EV) production and local content requirements, has prompted increased investment in domestic manufacturing. Steel is essential for car bodies, engines, and components, driving demand for high-quality flat products. Additionally, the broader manufacturing sector, including machinery, electronics, and consumer goods, requires various steel forms for production and packaging. Growth in these sectors also boosts demand for value-added and specialty steels, stimulating technological upgrades in domestic steel production. As supply chains localize and industrialization expands beyond Java, regional steel demand is becoming more diversified and robust, ensuring sustained consumption within the manufacturing ecosystem.
Government Policy and Import Substitution
Government policy plays a central role in shaping Indonesia’s steel market trends. Through measures like import restrictions, anti-dumping duties, and local content mandates, the government aims to promote domestic production and reduce reliance on imported steel. Initiatives under “Making Indonesia 4.0” support industrial self-sufficiency and encourage technological advancements in steel manufacturing. The development of domestic steel giants, such as Krakatau Steel, is backed by state investment and restructuring efforts to enhance competitiveness. Policies encouraging foreign partnerships and investment in smelters and processing plants (especially for nickel and stainless steel) have created a stronger upstream supply chain. These strategies aim to support local production, stabilize prices, and ensure supply security. By fostering a favorable regulatory environment and protecting the local industry, government policy acts as a key driver for market growth, import substitution, and the development of an integrated, resilient steel sector.
IMARC Group provides an analysis of the key trends in each segment of the market, along with forecasts at the country and regional levels for 2025-2033. Our report has categorized the market based on type, product, and application.
Type Insights:
The report has provided a detailed breakup and analysis of the market based on the type. This includes flat steel and long steel.
Product Insights:
A detailed breakup and analysis of the market based on the product have also been provided in the report. This includes structural steel, prestressing steel, bright steel, welding wire and rod, iron steel wire, ropes, and braids.
Application Insights:
The report has provided a detailed breakup and analysis of the market based on the application. This includes building and construction, electrical appliances, metal products, automotive, transportation, mechanical equipment, and domestic appliances.
Regional Insights:
The report has also provided a comprehensive analysis of all the major regional markets, which include Java, Sumatra, Kalimantan, Sulawesi, and Others.
The market research report has also provided a comprehensive analysis of the competitive landscape. Competitive analysis such as market structure, key player positioning, top winning strategies, competitive dashboard, and company evaluation quadrant has been covered in the report. Also, detailed profiles of all major companies have been provided.
Report Features | Details |
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Base Year of the Analysis | 2024 |
Historical Period | 2019-2024 |
Forecast Period | 2025-2033 |
Units | Million USD |
Scope of the Report |
Exploration of Historical Trends and Market Outlook, Industry Catalysts and Challenges, Segment-Wise Historical and Future Market Assessment:
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Types Covered | Flat Steel, Long Steel |
Products Covered | Structural Steel, Prestressing Steel, Bright Steel, Welding Wire and Rod, Iron Steel Wire, Ropes, Braids |
Applications Covered | Building and Construction, Electrical Appliances, Metal Products, Automotive, Transportation, Mechanical Equipment, Domestic Appliances |
Regions Covered | Java, Sumatra, Kalimantan, Sulawesi, Others |
Customization Scope | 10% Free Customization |
Post-Sale Analyst Support | 10-12 Weeks |
Delivery Format | PDF and Excel through Email (We can also provide the editable version of the report in PPT/Word format on special request) |
Key Questions Answered in This Report:
Key Benefits for Stakeholders: