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Indonesian steelmaker PT Krakatau Steel announced on January 5th that it has set a series of capacity targets for 2026 to further expand production in response to future growth in domestic steel demand. B50AH470 Non oriented electrical steel, The company anticipates this demand surge will primarily be driven by the Indonesian government's ongoing infrastructure development plans.
The company noted that Indonesia's national strategic projects implemented between 2025 and 2029 will be a key driver of steel demand. B50AH470 Non oriented electrical steel, This plan focuses on developing several steel-intensive sectors, including the construction of special economic zones and the advancement of interconnectivity projects such as railways and ports.
Citing forecasts from steel and mining observer Widodo Setiadharmaji, the company stated that Indonesia's annual steel consumption is projected to grow from the current approximately 23 million tons to 32 million tons between 2026 and 2029, driven by increased infrastructure investment. Looking further ahead, average annual demand is expected to rise to 36 million tons between 2030 and 2034, reach 59.5 million tons between 2035 and 2039, and is poised to climb to an average of 100 million tons per year between 2040 and 2045.
To match this growth trend, Krakatau Steel has outlined several capacity expansion targets for 2026, including commissioning a hot-rolled strip mill with a maximum monthly capacity of 120,000 tons and a cold-rolled steel mill with a maximum monthly capacity of 50,000 tons.
Company executives stated that they are prepared to gradually promote steel self-sufficiency in Indonesia and reduce reliance on imported steel through transformation and capacity expansion.
Previously, Krakatau Steel had received financial support from Indonesia's sovereign wealth fund, Danantara Indonesia, to support its expansion plans. B50AH470 Non oriented electrical steel, Since the fire at its hot-rolled strip steel plant in 2023, the company's production capacity has not recovered to its design level; this expansion will also help improve capacity utilization.
