Jakarta. Steel exporter Indonesia wants to cut reliance on the Chinese market as it eyes diversification to the Middle East.

Orders from China have been driving up Indonesia’s steel exports. However, Industry Minister Agus Gumiwang Kartasasmita warned of the dangers of overdependence, especially if that single market — in this regard China — faces economic disruptions.  

“I worry if we heavily rely on a single market. When that happens, imagine if the country experiences turmoil or economic problems, it would certainly take a toll on our steel industry,” Agus said in Jakarta on Friday, as reported by the state news agency Antara.

Indonesia is eyeing export opportunities to the Middle East. According to Agus, the region is witnessing a significant need for steel products for the reconstruction of infrastructure and industrial facilities such as refineries. 

“Perhaps the countries in the region whose steel industry is not as robust can be our next target market,” Agus said.

China was the largest export market for Indonesian steel in 2025, totaling $17.9 billion. Followed by Thailand ($1.8 billion), India ($1.6 billion), Vietnam ($864 million), and Italy ($777 million).

Iron and steel trade has been on a positive trajectory over the past five years. In 2025, exports reached 23.97 million tons, while imports were 16.69 million tons. This resulted in a 7.28 million tons surplus, the highest that Indonesia recorded in that period. 

If ferronickel is excluded from the calculation, the 2025 iron and steel trade balance is in the red territory with a 3.7 million ton deficit. Without ferronickel, imports reached 16.07 million tons, exceeding the 12.3 million ton exports. Raw materials made up 86% of the total volume.