Indonesia's steel manufacturing industry is expected to remain under pressure in 2026. The Indonesian Iron & Steel Industry Association (IISIA) assesses that domestic steel consumption has not fully recovered, and imported steel dominates the domestic market.

Harry Warganegara, Executive Director of the IISIA, stated that imported steel is expected to account for approximately 55% of Indonesia's domestic demand by 2026. This has led to a decrease of about half in the capacity utilization rate of Indonesian steel companies.

Harry pointed out that the imported steel that dominates the market mainly comes from China, which has greatly compressed the recovery space of Indonesia's steel manufacturing industry. The government should adopt strong and sustainable policies; otherwise, the industry will face the risk of stagnant or even declining profit margins and output.