Indonesia's Iron and Steel Import Value Soared 74% in 2021

The Central Statistics Agency (BPS) reported that Indonesia's iron and steel imports in the first year of the Covid-19 pandemic (2020) decreased by 29.69% to 11.35 million tons, compared to 16.15 million tons in the previous year.

However, Indonesia's iron and steel imports increased again by 14.81% to 13.04 million tons in 2021 compared to the previous year. Similarly, the import value surged by 74.42% to US$11.96 billion in 2021 compared to the previous year.

Ongoing infrastructure development projects undertaken by the government and private sector led to increased domestic demand for iron and steel.

Minister of Maritime Affairs and Investment Luhut Binsar Pandjaitan stated that Indonesia's imports of textiles and steel products remain high, despite the presence of many local players capable of producing quality steel products.

“A significant amount of steel is still imported, which will eventually kill our steel industry, even though we are already capable of production,” he said at a Showcase and Business Matching event held by the Ministry of Cooperatives and SMEs in Jakarta (April 11, 2022).

To reduce imported products, the government is developing a system to monitor the import and use of imported products through an e-catalog, along with a call for a national movement to be proud of Indonesian-made products (Gernas BBI).

The following are the volumes of Indonesian iron and steel imports in 2021:

1. Japan: 2,518.30 thousand tons
2. South Korea: 2,383.60 thousand tons
3. China: 1,438.00 thousand tons
4. Thailand: 936.00 thousand tons
5. Singapore: 552.10 thousand tons
6. Vietnam: 315.30 thousand tons
7. India: 206.40 thousand tons
8. United States: 71.70 thousand tons
9. Germany: 9.00 thousand tons
10. Italy: 3.40 thousand tons
11. Others: 4,604.00 thousand tons

Total: 13,037.80 thousand tons