PT Krakatau Steel (Persero) Tbk continues to expand its international presence by exporting 12,000 tons of hot-rolled coil (HRC) steel to Italy and Spain. The shipment was carried out through Cigading Port, Krakatau Bandar Samudera, Cilegon.
The current dynamics of the global steel industry are creating new opportunities for Indonesian steel producers. According to OECD data, the global steel industry is experiencing an oversupply of up to 625 million tons, prompting many countries to implement protective measures to safeguard their domestic industries. However, this situation has also opened supply gaps in certain markets, providing Indonesia with an opportunity to fill the void.
According to the Indonesian Iron and Steel Industry Association (IISIA), geopolitical conflicts such as the Russia-Ukraine war have caused a decline in Europe’s steel supply. Many Russian steel manufacturers, which were once major suppliers, now face export restrictions, creating a new opening for Indonesia to increase semi-finished steel exports to the region.
“Some Russian steel producers can no longer access the European market, and this presents an opportunity for us. Indonesia is now a potential source to meet Europe’s steel demand,” said Imam J. Faisal, Director of PT Vund Metal Utama, which collaborates with Krakatau Steel on this export initiative.
Meeting International Standards and EU Market Challenges
Entering the European Union (EU) steel market presents a unique challenge for Indonesian steel producers due to strict regulations and policies. Steel products in the EU must comply with stringent safety, quality, and environmental standards. To be marketed in Europe, manufacturers must obtain CE Marking, which certifies that the steel products meet all the technical and safety requirements imposed by the EU.
Krakatau Steel has taken significant steps to meet these standards. The company has successfully obtained CE Marking, ensuring that its steel products comply with European regulations. This achievement not only facilitates the export process but also strengthens market confidence in Indonesian steel products.
The success of this export initiative is also supported by government policies. Initiatives such as the Domestic Product Utilization Program (P3DN), Import Control through Commodity Balance Mechanisms, and the Specific Natural Gas Price Policy (HGBT) have provided a strong boost to the national steel industry. These policies enhance Indonesia’s competitiveness in international markets while driving domestic industrial growth.
According to Imam J. Faisal, regional government support is also crucial for the steel industry. “Exports like these have a widespread economic impact, from job creation and increased worker incomes to the growth of small and medium enterprises (SMEs) surrounding the industry,” he added.
Sustained Exports and the Path to the Future
Krakatau Steel’s successful export initiative is not just about numbers and volume, but also about making a real contribution to Indonesia’s economic development.
