Indonesian state-owned steelmaker PT Krakatau Steel announced on January 5 that domestic steel demand is expected to continue expanding due to the government's 2025-2029 National Strategic Projects (PSN). The company has set capacity growth and transformation targets for 2026 to capitalize on the growth opportunities brought by infrastructure and industrialization.

The company pointed out that the PSN, focusing on industrial parks, special economic zones, and interconnectivity projects such as railways and ports, will be the main drivers of steel demand. 

Market research predicts that Indonesia's annual steel consumption is expected to increase from the current approximately 23 million tons to 32 million tons between 2026 and 2029, with a long-term potential to reach 100 million tons annually in 2040-2045.

To meet this growing demand, Krakatau Steel plans to put new hot-rolled and cold-rolled production lines into operation in 2026 to increase capacity and utilization, and accelerate the reduction of import dependence. 

The company emphasized that it has received support from the sovereign wealth fund and will continue to expand and upgrade its production capacity, moving towards achieving self-sufficiency in Indonesia's steel supply.