The Indonesian National Importers’ Association (GINSI) stands against market monopoly in steel supply, saying there should be no monopoly in the procurement of steel within Indonesia. This is in response to the proposal of state owned steel maker PT Krakatau Steel to establish itself as the country’s steel logistics center. Krakatau Steel argued that such a move would help streamline and enhance the steel import trade system.
“There should be no monopoly in steel procurement in Indonesia as it would lead to higher prices and disrupt the supply to industries that rely on steel,” said Capt. Subandi, GINSI Chairman, in press statement on Sunday, March 16, 2025.
According to Subandi, the risks could be further exacerbated if steel procurement becomes restricted to suppliers exclusively appointed by Krakatau Steel.
Subandi also criticized Krakatau Steel’s performance, claiming that despite being considered a government-backed entity, the company has failed to meet its production targets. He pointed out that the state-owned company has resorted to trading imported steel instead of fulfilling domestic production demands.
Subandi emphasized that the steel-based industry is seeking more predictable supply schedules, including timely availability of steel and its various types.
“Business owners who rely on steel raw materials are not overly concerned if prices increase slightly, as long as there is a steady supply and a variety of steel products to meet their needs,” said Subandi.
Earlier, Krakatau Steel proposed its vision to become a steel logistics center. The company’s President Director, Muhamad Akbar Djohan, argued that improving the import trade system was crucial to meeting the steel demands of national projects.
He also emphasized that such a system would help mitigate the negative impacts of steel imports on the national industry, address unfair trade practices (such as dumping, subsidies, and non-compliance with standards), and ensure a steady supply of raw materials for the industry.
This steel logistics centre, according to Djohan, would also promote economies of scale within the Krakatau Steel Group’s production operations.
Djohan further explained that the company is undergoing a restructuring process to improve its performance. This restructuring aims to lay the foundation for sustainable growth and contribute to the development of industrialization and downstream industries in Indonesia.
“With improved performance and government support to protect the domestic steel industry, Krakatau Steel, alongside other industry players, can strengthen the resilience and independence of the national steel sector,” Djohan said in his official statement.