The overall outlook for steel demand in Indonesia is positive and, taking into account the expected growth in spending for infrastructure - Indonesia's expected 3.1% steel demand growth in 2020 to depend on infrastructure projects backed by its government socio-economic development plans.
Industry analysts expect growth in steel demand in the country to reach 22.7 million tonnes by 2024, an increase of more than 50% from 2018.
Indonesia increased its state budget for 2020 to more than 2,500 trillion rupiah ($180 billion), up by 8.5% year on year, with 419.2 trillion rupiah earmarked for infrastructure development, an increase of 4.9% from 2019.
The development of 4,700 trillion rupiah of infrastructure projects, including new roads, airports, seaports and the country’s first mass rapid transit system to improve connectivity across the country will increase its steel consumption to as much as 21.4 million tonnes per year over the next few years.
High Market Potential
- Since 2017, the World Band ranked Indonesia as top in ASEAN for the contribution in the manufacturing sector to the world economy.
- In addition, data from the United Nations Industrial Development Organization (UNIDO), Indonesia is also ranked 4th in the world among 15 countries whose manufacturing industry`s contribution to gross domestic product (GDP) is above 10 percent.
- The expansion of various manufacturing sectors will boost infrastructure, machinery production and metal raw materials needs from the metal sector.
IMT & FTI Success Drivers
DATA SOURCE
- OECD Report : Steel Market Development
- Global Business Guide Indonesia
- Indonesia Statistic, Ministry of Industry
- The Indonesian Iron and Steel Industry Association
- Global Business Guide Indonesia
- Worldbank.org
- Wikipedia
- Cabinet Secretariat of The Republic of Indonesia
- The Indonesian Iron and Steel Industry Association