Outlook

Perkembangan Industri Besi Baja di Indonesia

Disampaikan pada FGD Akhir Penyusunan Kajian Neraca Penyediaan dan Permintaan Besi atau Baja, Baja Paduan dan
Produk Turunannya Nasional

Direktorat Industri Logam – Kementerian Perindustrian Republik Indonesia

Bandung, 20 November 2024

1
Content

1 Political, Policies & Economic Performance

2 Trend & Development of Major Steel Consuming Sectors

3 Recent Development of Iron & Steel Market

4 Steel Exports and Imports for 2023

5 Update of Steel Mill’s Investments

6 Trade Remedies

7 Infrastructure and Digital Technology Development

8 Decarbonisation Trends

9 Steel Industry Forecast in 2024 and 2025

2
1
Political, Policies & Economic
Update
Political Situation, Government Policies, Economic Indicators,
Investment Update, Covid-19 Update, Medium & Long-Term Plan

3
1.1 Political Update (1/2)

• Smooth transition from President Joko Widodo

to Elected President Prabowo Subianto on 20th
October 2024.
• Continuation of major policies, no disruption is
expected.
• Indonesia economy is projected to continuosly
grow at faster rate.
− GDP growth in 2025 is targeted at 5,2%.
New government under President Prabowo
targeted 8% of GDP growth on the following
years.
− Focus area of growth: food,
industrialization, education, healthcare,
and digital transformation.
− Downstreaming is considered as one of the
main keys to achieving economic growth of
up to 8%. Leading commodities that will be
downstreamed include iron and steel.

4
1.1 Political Update (2/2)

Vision: Moving Forward Together Towards Golden Indonesia 2045

8 Mission (Asta Cita Program)

§ Reinforce the ideology of Pancasila, democracy, § Advance downstreaming an

and human rights. industrialization to increase domestic
value-added.
§ Enhance the state defense and security system
and foster national independence through self- § Build from the grassroots level to achieve
sufficiency in food, energy, water, creative economic equality and eradicate poverty.
economy, green economy, and blue economy.
§ Strengthen political, legal, and bureaucratic
§ Elevate quality employment, encourage reforms, as well as enhance the prevention and
entrepreneurship, develop creative industries, eradication of corruption and drugs.
and continue infrastructure development.
§ Foster a harmonious coexistence with the
§ Strengthen the development of human environment, nature, and culture, and promote
resources (HR), science, technology, education, tolerance between religious communities to
health, sports achievements, and gender achieve a just and prosperous society.
equality, as well as empower women, youth, and
people with disabilities.

5
1.2 Government Policies (1/3)

Food Estate

The food program includes the development of food estates focusing on main
commodities such as rice, corn, cassava, soybeans, and sugarcane. The target is
to achieve an additional 4 million hectares of harvested area for food crops
by 2029.

Giant Sea Wall

The Giant Sea Wall project is planned to stretch from Jakarta to Gresik, East
Java. The Coordinating Minister for Economic Affairs, Airlangga Hartarto,
explained that the purpose of the GSW project is to address the threats of
coastal flooding and land subsidence in the northern areas of Java.

It is estimated that at least 70 industrial zones, 5 special economic

zones, 28 industrial designated areas, 5 industrial growth centers,
and other economic zones would be affected if the degradation issues in North
Coast Java are not addressed effectively.

6
1.2 Government Policies (2/3)

3 Million Housing
The Minister of Housing and Settlements, Maruarar Sirait, inaugurated the
construction of the three million homes program initiated by President
Prabowo Subianto. The commitment to achieve this program is demonstrated by the
Ministry of Housing and Settlements, which conducted the groundbreaking ceremony
for the first free apartment complex located in Sukawali Village, Tangerang, Banten.

The Chairman of Real Estate Indonesia (REI), Joko Suranto, expressed optimism that
the three million homes program would proceed according to the government’s set
target.

Toll Road

The Ministry of Public Works and Housing (PUPR) has designed a master plan for
the construction of new toll roads for the upcoming administration period, with a total
length of 2,300 kilometers over the next five years. This figure is close to the
total length of 2,700 kilometers of toll roads built over the ten-year administration of
President Joko Widodo.

7
1.2 Government Policies (3/3)

Ease of Doing Business Policy Latest Update Impact of Ease of Doing Business

Encouraging industrial
Government
investment across Speed up the spread of industrial development
Regulation
Indonesia, especially throughout Indonesia by improving the
No. 20/2024
outside Java, to investment climate and offering incentives to
The promote balanced companies that invest in industrial zones.
regional growth.
Government
Focuses on
Regulations Offering attractive tax incentives like
and Government
Focuses on the regulation exemptions from Income Tax, VAT, and Luxury
of Land Use Rights in the Goods Tax. Investors can get building rights for
Procedures Regulation No. Indonesian Capital City up to 80 years, with extensions allowed. The
29/2024
for (Ibu Kota Nusantara/IKN) regulation also simplifies business permits,
making it easier and faster for investors to start
Ease of their projects.
Doing
Business
A new investment
Danantara management agency
established by President Danantara, which is designed to function like a
sovereign wealth fund, provides stability and
Prabowo Subianto to
certainty to investors through structured asset
handle investments in
management.
Indonesia outside the
state budget
8
1.3 Economic Indicators
Indonesia’s GDP Growth (%, y-on-y)

7,08
5,06 5,05 5,01 4,96 5,03 5,02 5,46 5,73 5,01 5,04 5,17 4,94 5,04 5,11 5,05 4,95 Indonesia’s GDP growth in Q3
2,97 2024 recorded an annual
3,53 expansion of 4.95% year-on-year
-0,69
(y-o-y) and a quarter-on-quarter
-3,49
-2,17 (q-o-q) increase of 1.50%.
-5,32
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2019 2020 2021 2022 2023 2024

In Q3 2024, the Manufacturing

sector was the leading
contributor to growth, with a
year-on-year increase of 0.96%.
Rp3.125,0 Rp3.231,0 Rp3.279,6 It was followed by the
triliun triliun triliun
(ADHK) (ADHK) (ADHK) Construction sector, which
Rp5.295,0
triliun
Rp5.536,5
triliun
Rp5.638,9
triliun
contributed 0.71%, showing an
(ADHB) (ADHB) (ADHB) improvement compared to its
contribution in both Q3 2023
Q3 Q2 Q3
2023 2024 2024
and Q2 2024.

Source: Bureau Central of Statistics (BPS) 9

1.4 Investment Update
Total Investment Realization

3000,0
Realization Strategic Objective
2500,0
1239,3
2000,0 1099,8

1500,0 968,4
817,2 858,5
721,3 792,0
1000,0 678,8
519,5 594,8 1650,0
456,6 1418,9
500,0 809,6 826,3 901,0 1027,2
545,4 612,9 692,8 765,0
463,1
0,0
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024

Investment realization in 2024 is expected to reach IDR 1.261 trillion, reflecting a 16.3% year-on-year (y-o-y) growth.
Foreign investment made a significant contribution, accounting for 51.8% of the total investment and recording a 16.95% y-o-y increase.

Top 5 Origin Country Singapore Hongkong, RRT R. R. Tiongkok USA Malaysia

of Foreign Investment
in Quarter III-24
14,35 M 6,06 M 5,78 M 2,82 M 2,72 M
Source: Ministry of Investment and Downstream Industry
(BKPM) US$ US$ US$ US$ US$
10
1.5 COVID-19 Update
COVID-19 SITUATION DASHBOARD
Epidemiological Update for Week 16, 2024 (14 – 20 April 2024)
Since June 21, 2023,
Confirmed Cases Recovered Cases Death Total Active Cases
Indonesia has officially This Week This Week This Week
shifted COVID-19 from a
pandemic to endemic 6 5 5 1337
status. This decision
COVID-19 Development in Indonesia: 2020 - 2024
came after a significant
decline in daily cases and
a serosurvey showing that
99% of the population
had developed COVID-19
antibodies.

The shift aims to support

a stronger economic and
social recovery for the
country.

https://infeksiemerging.kemkes.go.id/dashboard/covid-19 11
1.6 Medium & Long-Term Plans (1/4)

National Vision: Indonesia Vision 2045 Goals of the 2045 Vision

Independence, Unity, Sovereignty, Justice, and
Prosperity
Goal of Vision No. 3
Leadership and influence in the international arena increased
• Global Power Index
Sovereign
Indonesia Gold Vision 2025-2045

Goal of Vision No. 1 Goal of Vision No. 2 Goal of Vision No. 2

5 Goals of the Indonesia Gold Vision Achieve a per capita Poverty decreases and Poverty decreases and
2025-2045 income similar to inequality reduces inequality reduces
developed countries • Poverty Rate • Human Capital Index
• Gross National Income (GNI) • Gini Ratio (Index) (Index)
Per Capita • Contribution of Eastern
Advanced • Contribution of the Maritime Indonesia’s GDP (PDRB
KTI)
Sector to GDP
8 Missions of Development • Contribution of the
Manufacturing Sector to GDP

17 Directions of Development
Goal of Vision No. 5
Greenhouse gas (GHG) emission intensity decreases toward net zero
emissions
• Reduction in GHG Emission Intensity
45 Key Indicators of Development Sustainable • Environmental Quality Index

12
1.6 Medium & Long-Term Plans (2/4)
01 Per capita income equivalent to developed nations 02 Poverty is reduced and inequality decreases

0,5 -
GNI Per Capita (USD) 20,8 28 Tingkat Kemiskinan (%) 7,0 - 8,0 0-8

Kontribusi PDB Maritim (%) 8,1 15 Rasio Gini (indeks) 21,4 28,5

Kontribusi PDB Manufaktur (%) 5.500 - 5.520 30.300 Kontribusi PDRB KTI (%) 0,379 - 0,382 0,290 - 0,320

2025 Baseline 2045 (Target) 2025 Baseline 2045 (Target)

Source: World Bank, BPS, Bappenas Source: BPS, Bappenas

Leadership and influence on the international stage

03 increase 04 Competitiveness of human resources improves

34 (2023) 0,56
Global Power Index (peringkat) Indeks Modal Manusia (indeks)
15 Besar 0,73

2025 Baseline 2045 (Target) 2025 Baseline 2045 (Target)

Source: Pareto economics, Bappenas Source: World Bank, Bappenas

GHG emission intensity decreases towards net-

05 zero emission Indeks Kualitas Lingkungan Hidup 83 76,49

Penurunan Intensitas Emisi GRK (%) 93,5 38,6

Source: KLHS, Bappenas 2045 (Target) 2025 Baseline 13

1.6 Medium & Long-Term Plans (3/4)

Development Phase

First Phase Strengthening the foundation 1

Social Transformation:
(2025-2029) Fulfilling basic services in Health Education, and Social
of transformation Protection.
Indonesia
Economic Transformation:
Gold Vision 2 Down streaming of Natural Resources and strengthening
With the establishment of a research, innovation, and labor productivity.
2045: Second Phase strong foundation, Indonesia
Become a (2030-2034) is set to accelerate its economy 3
Governance Transformation:
Functionally appropriate and collaborative institutions,
Sovereign, improvement of civil servant quality, effective
Advanced regulation, digitalization of public services,
enhancement of political party integrity, and
and empowerment of civil society.
Suistainable Third Phase Indonesia starts steps to
(2035-2039) expand globally 4
Rule of Law, Stability, and Indonesian
Country Leadership:
Strengthening the rule of law and stability, while building a
regional deterrent defense force and resilient diplomacy

Indonesia succeeds in 5
Social, Cultural, and Ecological Resilience:
Four Phase realizing Indonesia Gold 2045 Strengthening social, cultural, and ecological resilience as the
(2040-2045) foundation and basic capital for development.
vision

14
1.6 Medium & Long-Term Plans (4/4)
BUDGET PRIORITIES TO SUPPORT ECONOMIC TRANSFORMATION

Education Health Social Protection

2024: 665,1 T > 2025: 722,6 T 2024: 187,5 T > 2025: 197,8 T 2024: 496,8 T > 2025: 504,7 T
• Improving access and quality of education • Accelerate the reduction of stunting • Continue various social protection programs
• Infrastructure enhancement, teacher • Improve the effectiveness of the JKN • Accelerate poverty graduation efforts
competence program • Improve the design and implementation
• Vocational education strengthening • Enhance access, quality, and availability of effectiveness of social protection programs
• Increased investment in education sector healthcare facilities • Strengthen lifelong social protection
• Gradually strengthen the independence of • Promote adaptive social protection schemes
the pharmaceutical industry to anticipate crisis risks

Infrastructure Food Security

2025: 400 T 2024: 114,3 T > 2025: 124,4 T
• Develop infrastructure such as irrigation, • Intensify and expand agricultural land • Strengthen aquaculture programs
dams, schools, hospitals, roads, ports, and • Improve agricultural product distribution • Strengthen institutions, financing, and
airports chains protection for farming businesses
• Strengthen digital infrastructure and • Provide agricultural infrastructure such as • Develop agricultural infrastructure such
technology development fertilizers, seeds, tools, and pesticides as dams and irrigation systems
• Provide or renovate homes with proper • Strengthen national food reserves and food
sanitation 15
storage systems
2 Trend & Development of Major
Steel Consuming Sectors
Construction, automotive, shipbuilding, manufacturing, and
others

16
 2.1 Construction
Construction Sector Contribution to Indonesia’s GDP (%, y-on-y)

7,68 7,59 7,29 7,48

6,39
4,82 5,23

1,02 0,63 1,61

0,32

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023 2024

Distribution (%) Growth (%, y-on-y )

19,02 Manufacturing Industry 4,72 § The construction sector is one of the key contributors to Indonesia's
13,71 Agriculture 1,69 GDP, consistently accounting for around 10.06% of total GDP.
13,09
10,06
Wholesale 4,82
7,48
§ In 2024, the construction sector is expected to make a positive
Construction
9,06 3,46
contribution to GDP and provide employment for more than 9.47
Mining
6,17 8,64 8,64
million workers.
Transportation & Warehousing
4,28 Information & Communication Technology 6,86 § This growth is driven by the expansion of infrastructure projects
4,09 5,49
Financial Services supported by both the government and private sector. It aligns with
2,62 Educational Services 2,51
the ongoing development of the New Capital City (Ibu Kota
2,62 Accommodation & Food Services 8,33 8,33
3,94
Nusantara/IKN) and other major construction activities, such as toll
2,61 Government Administration
2,32 2,32
roads and various infrastructure projects.
Real Estate

Source: Bureau Central of Statistics (BPS) 17

 2.2 Automotive
Rising Demand for Electric Vehicles in Indonesia Driven by Subsidies & Market Shift
Vehicle (4-wheels) (‘000 Units)
Production +5% Indonesia HEV and BEV sales
+4.8% 1.535
Domestic Sales
1.470 -5%
1.462 Hybrid Electric Vehicles (HEV)
1.395 Battery Electric Vehicles (BEV)
1.287 +5% Total Sales 71.358
+9.5%
1.155
1.122 -4% 1.100
1.030 1.048
1.005 363%
(c-to-c)
887 54.179

690 15.427
5.100
532 17.051
10.327

2022 2023
2019 2020 2021 2022 2023 2024f 2025f

§ The government will subsidize the purchase of electric vehicles with the
aim of reaching 2.5 million EV users by 2025 and reducing air
§ In 2023, domestic sales of 4-wheel vehicles decreased by -5% due to a pollution by 29% in 2030.
slowdown in the automotive market in the second half of 2023. But, the § According to data from GAIKINDO, the sales of EV in 2023 reached
contribution of automotive product exports growth of 5.96 percent 71,358 units, an increase of 363% compared to 15,427 units in 2022.
compared to 2022. Hybrid electric vehicles (HEVs) still dominate sales with 54,179 units
or around 76% of total electric vehicle sales. Meanwhile, sales of
battery electric vehicles (BEV) reached 17,051 units, or around 24%
Source : GAIKINDO (The Association of Indonesia Automotive Industries), 2024.
of total electric vehicle sales.
18
 2.3 Shipbuilding
As an archipelagic state, the shipyard industry is becoming one of the main industries in Indonesia. Aligning with its 342 shipyard industry
and 147 ship component industry, Indonesia is able to produce warships, frigates, tankers, barges, tugboats, landing crafts, passenger boats,
and even submarines.

Indonesian Shipbuilding Industry Problems:

• Most of the ship’s materials / components are imported.
• There is a government's policy of exempting import duties on imported
ships but the ship's components are charged with a 5% import duty, which
causes ship manufacturers to have difficulty producing their own ships.
Opportunity:
• Indonesia has a grand design to establish Sea Toll Programs to improve
TOTAL connectivity, by increasing the capacity of 24 seaports.
342 Shipyard
• Indonesia has a national number of commercial ships, around 30,000
units.
• Assuming 50% of ships need repair per year, the average repair work
needs around 50 tons of steel per ship, so the need for steel plates for ship
repairs is around 750,000 tons per year.

Source: Iperindo

The shipbuilding industry is one of the sectors that had a strong recovery after the Covid-19 pandemic. Steel demand in shipbuilding industry
increased by 60% in 2023 to 542k ton from 340k ton in 2022. It is projected to grow 5.0% cumulatively in 2024.
19
2.4 Oil and Gas
Steel demand in Oil and Gas industry decreased by -0,6% in 2023 to 106k ton from 107k ton in 2022. It is projected to grow 5.0%
cumulatively in 2024.

Oil and Gas Industry Challenges:

The performance of oil production in Indonesia cannot cover the
consumption rate of crude oil that has continued to increase from 1,585
MBOPD in 2022 to estimated 1,672 MBOPD in 2023. But, the
production decrease from 612,3 MBOPD in 2022 to 605,5 MBOPD in
2023. So, to meet the consumption demand, crude oil must be imported.

Opportunity:
• The Government wants to encourage households and industries to
utilize more natural gas.
• Deep sea exploration will be one of the main focuses in discovering
future oil and gas reserves.

Source: Ministry of Energy and Mineral Resources (ESDM)

20
2.5 Manufacture, Wholesale, Infocom
Manufacturing The Manufacturing Industry grew, driven by both domestic
and foreign demand.
5,47 5,35 5,02
4,33
4,83 4,67 4,56 4,49 4,64 4,63 4,84 § The Food and Beverage Industry grew by 5.82%, driven by strong
5,07
5,64
4,88 5,19 domestic demand for food products and an increase in beverage
4,83 4,43 4,72
4,01 4,07 4,13 3,95 exports.
Non Oil and Gas § The Basic Metals Industry expanded by 12.36%, supported by
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
rising foreign demand for basic metals, especially iron and steel.
2022 2023 2024
§ The Metal Goods Industry, along with the Computer, Electronics,
Optics, and Electrical Equipment sectors, grew by 7.29%, boosted
by foreign demand for metal building materials and electronic
Wholesale and Retail Trade
components.
5,74 6,56
4,43 5,37 4,94 5,29 5,1 4,59 4,86 4,82
4,09

Wholesale and Retail Trade; Car and Motorcycle Repair

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 grew along with increased domestic supply and imports
2022 2023 2024 § This growth was driven by increased sales of domestic goods and
imports, mainly from non-oil and gas processing industry goods.
Information & Communication Technology

7,15 8,06 8,72

7,11 8,03 8,51 8,41 7,66 Information and Communication grew with an increase in
6,94 6,74 6,86
telecommunications activity
§ Supported by the rise in data traffic (data communication),
internet usage, and information technology services.
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3
2022 2023 2024

Source: Central Bureau of Statistics (BPS), 2024

21
2.6 Share of Steel Consuming Sector to The Steel Demand

Steel YoY % Growth

SECTOR Weights
(%) 2019 2020 2021 2022 2023 2024F 2025F
§ Construction sector was still
Construction 77.1 9.4 3.8 1.1 5.4 9.2 5.5 5.7 the biggest consuming sector
Domestic Appliances 3.3 -1.6 -18.6 2.0 41.0 0.3 5.3 5.4 in Indonesia with contribution
of 77.0%, followed by
Electrical Equipment 1.9 14.5 -19.7 1.3 7.5 6.1 5.3 5.3 automotive industry with
11.6%.
Mechanical Machinery 2.3 22.4 18.7 -12,6 2.1 -2.2 5.0 5.0

Metal Products 1.2 -5.1 27.5 -30,4 39.3 2.9 5.0 5.0
§ The growth of steel
consuming in 2023 increase
Automotive 11.6 -6.9 -41.5 4.3 14.5 4.1 4.0 5.0 7.7% compared to 2022, and
expected to increase about
Other Transport 2.7 31.8 6.5 1.4 19.6 5.4 5.0 5.0 5.2% in 2024.

Steel Weighted 100.0 7.4 -4.8 0.6 8.0 7.7 5.2 5.6

22
3 Recent Development of Iron &
Steel Market
Steel Consumption, Production, Exports and Imports for 2024

23
Steel Consumption, Production, Export and Import for 2024

Produksi
Production Ekspor
Export Impor
Import ASC
20

18,5
18
17,6
§ Apparent steel consumption
16,6 in 2024 is expected to
16 16,0

16,7
15,5 increase by 5.2% at the level
15,0 15,0

15,8
18.5 mil tons.
14
Volume (million tonnes)

13,7

14,4
§

14
12,7 Production volume

13
12 increased by 5,7% to 16,7
11,4
million tons.

10,9
10
§
10

Import of steel volume in

8 2024 increased by 1.4% to
8,4
7,9

7,6

7,1 million tons.

7,3
7,1

7,1
7,0
6,9

6,7
6,6
6,5
6,2

5,6
§ Export increased by 1.9%

5,3
5,2

5,2
5,1
4 to 5,3 million tons.
3,6
3,3

2
1,3

2,6
1,3
0,8

0
2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F

24
4 Steel Exports and Imports for
2024

25
 Steel Export (HS 72)

17,89
RoW
15,58 28%
14,89
13,38
12,86

China
8,70 50%

Philippines
5,79 4%
Turkey
5%
India
6% Taiwan
7%
2019 2020 2021 2022 2023 Q3 2024 Q3 2024

§ In Q3 2024, Indonesia's total export quantity reached 12.86 million tons, marking a 21.2% increase compared to Q3
2023.
§ The top five export destinations were China, Taiwan, India, Turkey, and the Philippines, with China alone accounting for
49.87% of Indonesia’s exports.

26
Source: Central Bureau of Statistics (BPS), 2024
 Steel Import (HS 72)

16,15

14,09 RoW
13,81
13,04 27%
China
11,36 34%
10,16 9,83

South Africa
6%

South Korea
6%
Japan
Oman
16%
11%
2019 2020 2021 2022 2023 Q3 2024 Q3 2024

§ On the import side, the total quantity reached 9.83 million tons in Q3 2024, reflecting a 3.2% decrease compared to
Q3 2023.
§ Indonesia’s main import sources were China, Japan, Oman, South Korea, and South Africa, with China representing
34% of the import origin.
27
Source: Central Bureau of Statistics (BPS), 2024
5 Update of Steel Mill’s
Investments

28
New Investment
Capacity
Company Owner (Economies) Status Start Equipment (Thousand Sources
Metric Ton)

Delong Holdings (45%), Shanghai Company HP, Metal

Dexin Steel Indonesia Plan 2023 BOF 2500
Decent Geroup (43%) Expert

SEAISI Presentation,
Krakatau POSCO POSCO (70%) Plan 2025 BOF 3000 Metal Expert, Company
HP

PT Gunung Raja Paksi Gunung Steel Group Plan - EAF 500 Platts

Anshan Iron & Steel Group Anshan Iron & Steel Group
Plan - Steelmaking 5000 The Jakarta Post
Corporation Corporation

Metal Expert, American

Fuhai Group & Ansteel Geoup Fuhai Group Plan - Steelmaking 1750
Metal Market

Metal Expert, American

Hebei Bishi Steel Group Hebei Bishi Steel Group Plan - Steelmaking 3000
Metal Market

PT Gunung Raja Paksi Gunung Steel Grup (GSG) Plan - Steelmaking 3000 Metal Expert

Shaanxi Iron and Steel Group Shaanxi Iron and Steel Group Plan - Steelmaking 7500 Metal Expert

Wuhan Iron & Steel (Wugang) Wuhan Iron & Steel (Wugang) Plan - EAF 5000 Platts
29
6 Trade Remedies

30
Trade Remedies

No Duties Regulation HS Code Origin Tariff (%) (range) Status

1 AD HRC of Other Alloy Steel PMK 15/2022 7225.30.90 China 4.2-50.2 Active
2 AD HRC PMK 31/2022 7208.10.00.00 - China, India, Russia, 0-20 Sunset Review
7208.90.00.00 Kazakhstan, Belarus,
Taiwan, Thailand

3 AD HRC PMK 23/2011 7208.10.00 .00 - Korea, Malaysia 0-48.40 Sunset Review &
(Extend on process) 7208.90.00.00 Interim Review

4 AD HRP PMK 111/2019 7208.51.00.00 - China, Ukraine, Singapore 10.47-12.50 Sunset Review
7208.52.00.00

5 AD CRC/S PMK 65/2013 Jo. 7209.16.00.10 - China, Korea, Japan, Taiwan, 5.90-55.60 Sunset Review
(Extend on process) PMK 224/2014 7209.90.90.00 Vietnam

6 AD Tinplate PMK 66/2024 7210.12.10.00 - China, Korea, Taiwan 4.40-7.90 Active

7210.12.90.00

7 AD I & H Section PMK 71/2024 7216.32.10 - China 11.93 Active

7216.33.90

8 Safeguard I & H Section of PMK 02/2018 7228.70.10.00- 17,25-17,75 Active

Other Alloy Steel 7228.70.90.00

31
7 Infrastructure and Digital
Technology Development

32
7.1 Infrastructure D evelopment (1/3)
The National Strategic Projects (PSN) consist of 218 projects and 15 programs with an estimated investment value of
IDR 6.246.7 trillion, as of May 16, 2024, based on Coordinating Minister for Economic Affair Regulation No. 6/2024.

Maluku & Nasional

Papua 4%
7%
14 Projects
40 Projects 1 Program 16 Projects Bali & Nusa
Tenggara
1 Program 8% Jawa
32 Projects 42%

Sulawesi
15%

91 Projects
17 Projects
Kalimantan
6%
8 Projects Sumatera
13 Programs 18%

PSN covers 14 Sectors and 15 Programs

33
7.1 Infrastructure D evelopment (2/3)
Indonesia’s Special Economic Zones (SEZs) Encourage Economic Growth, Equitable Development, and Increase Competitiveness
20 SEZs and Main Activities SUMMARY OF THE 18 SPECIAL ECONOMIC ZONES PERFORMANCE
Cummulative Achievement SEZ until
Q1 2024

Investment: Number of
205,2 IDR employment:
Trillion 132.227 worker

• This year, the Special Economic Zones (SEZ)

recorded an investment of IDR 31,4 trillion, or
40% of the target set,
• Absorbed 15.229 workers, or 39% of the 2024
target.
• Additionally, 36 new business actors were
added.
• These achievements are higher compared to the
same period last year, which reached IDR 22,2
trillion, or 33% of the target.

34
7.1 Infrastructure D evelopment (2/3)
Indonesia’s New Capital Development Phase 1 progress has reached 93 Percent until September 2024

Impelementation Timeline

Infrastructure Development Phase 1 Core Innovation and

Infrastructure economic centers
Phase 1 Development Phase 2 development
2022-2024 2022-2024
Basic infrastructure
Presidential ASN development for 500 Implementation
Palace Housing thousand residents of an incentive
system for priority
The population economic sectors
2022-2024 2021-2024 moving to IKN
includes ASN Completion of the
Ministries / Roads ministries/institutions central government
institutions Infrastructure , TNI, Polri and their relocation
family members.

2022-2024 2022-2023
Infrastructure and Become the best
Great Waste competitive and
ecosystem
Mosque Infrastructure Phase 3 development for the Phase 4 livable city
three cities of IKN-
Samarinda-Balikpapan Achieve Net-Zero
2023-2024 2023-2024
Carbon Emissions
Construction of utility
TNI, Polri, Educational and
networks
BIN Housing Health Facilities Implementation of
Development of 100% renewable
innovation and talent energy
The estimated steel requirement in phase 1 centers
is 331.215 ton. (source: PUPR) 35
Sources:
- KEMENPUPR, ikn.go.id
7.2 D igital Technology D evelopment
Digital Economy as a New Growth Engine
Indonesia aspires to be a developed country by 2045. The economic growth rate should be maintained at an average of 6% per
year. This requires a breakthrough in digital economy development to become a catalyst.
Indonesia’s Digital Economy Value (Billion US Dollar)

90
80
76
63

44
40
27

2018 2019 2020 2021 2022 2023 2024

• Indonesia’s digital economy is projected to reach a gross

merchandise value (GMV) of $90 billion (Rp 1,422
trillion) this year, marking a 13 % increase from the
previous year, according to a joint report by Google
Indonesia, Temasek, and Bain & Company.

• This growth cements Indonesia’s status as the largest

digital economy in Southeast Asia, with other
countries in the region also experiencing double-digit
increases.
36
8 Decarbonisation Trends

37
Climate Change and Carbon Emission Control (1/3)
Indonesia is committed to achieving Net Zero Emissions by 2060 or sooner.
Transitioning to renewable energy has been a main concern for the Indonesian government. More initiatives have been taken to ensure the availability of
affordable renewable energy that takes into account environmental protection and sustainability in the long term

Commitment to Reducing Emissions in the Energy Sector

• Indonesia increased the GHG emission reduction target to 31.89% with its own capabilities, and 43.20% with international support. This commitment will
be implemented through initiatives, including energy conservation and the promotion of clean and renewable energy sources.
• In 2023, emission reduction in the energy sector stood at 127.67 million tons of CO2, exceeding the target. This was resulted from several efforts, including
1) renewable energy implementation, 2) energy efficiency application, 3) the use of low carbon fuel (natural gas), 4) the use of clean technology, and 5)
other activities.

Emission Reduction in the Energy Sector (in Million Tons)

142
127,67
116
91,5
91
64,4

70
67
54,8

58
51
40,6
45
39
29
2017 2018 2019 2020 2021 2022 2023 2024

Target Realization
38
Source: OJK
Climate Change and Carbon Emission Control (2/3)

Preliminary Concept – IISIA’s Perspective

Short-term Medium Term Long-Term

2030 2040 2050

Increase efficiency Maximize the use of Developed HyREX that

Energy scraps utilizes hydrogen as a
reducing agent in place of
Optimizing steel coal
production process Increase the use of
through artificial hydrogen as a reducing Transforming into a
intelligent technology agent hydrogen-based steel
(AI) producer

Improving the mix of Applying carbon capture

new and renewable utilization and storage
energy (CCUS) technology

39
Climate Change and Carbon Emission Control (3/3)

Improving the mix of new and renewable energy Rooftop Solar Power Plant (PLTS)

Installation of solar panels in Hot Rolling Plant § Total capacity of 33 MWp (by 2025)
office as zero carbon office in Indonesia § Reducing carbon emissions by approximately
47,000 tons/year
Utilization of by-product gas &; waste heat as a
new energy source
Transition to Eco-Friendly Hydrogen
Improve energy efficiency § Technical feasibility study
§ Prevent and reduce steam leakage conducted by Katalis, a bilateral
§ Energy saving in office buildings (lights, air business development program
conditioning) between Indonesia and Australia
§ Replacing the use of LPG into natural gas
Ecolabel, EPD, and ESG Strategy Guide
§ Optimize fuel consumption in reheating
furnaces and other facilities § Green Label Indonesia Certification
§ Environmental Product Declaration
Adoption of NZE Technologies (EPD)
§ Carbon Capture Utilization and Storage § ESG Strategy Guide aligned with
(CCUS) Sustainable Development Goals
§ Partial utilization of hydrogen as reducing (SDGs), Global Reporting Initiative
agent (GRI), and Responsible Steel Principles
40
§ Hydrogen based steelmaking (HyRex)
9 Steel Industry Forecast in
2024 and 2025

41
Forecast for Steel Demand
National Steel Consumption Growth, Projected About 5.2% (18,5 Mil. Tons) In Stable Condition

Apparent Steel Consumption 19,6

in mil. tons 18,5
17,6
16,6
15,9
2018 2019 2020 2021 2022 2023 2024F 2025F 15,1 15,1 15,5
13,6
12,5 12,7 12,9 12,7
11 11,4
Apparent Steel 9
Consumption 15,1 15,9 15,1 15,5 16,6 17,6 18,5 19,6 7,4
(mil. tons)
Change (mil.
+1,5 +0,8 -0,8 +0,4 +1,1 +1,0 +0,9 +1,1
tons)
Growth YoY (%) +11,0 +5,7 -5,3 +2,6 +7,3 +6,3 +5.2 +5,5
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024F 2025F

§ National steel consumption in 2025 is estimated to reach 19.6 million tons or grow by 5.5% following the national economic growth
scenarios in 2024 of 5,5%.
§ This growth is supported by various conditions that drive demand for steel, including: global steel growth, national economic growth,
government infrastructure spending, national strategic projects (PSN) including the new capital city (IKN) development, growth in the
property sector, growth in the automotive industrial sector that uses steel, electronics and household appliances.
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