Indonesia-based PT Krakatau Steel has committed to boosting capacity by outlining several targets for 2026 to meet a projected rise in the nation’s steel demand, which is expected to be driven by the government’s infrastructure push, the company said in a release on Jan. 5.

Indonesia’s implementation of national strategic projects for 2025-2029 will be a major demand driver for steel, Krakatau Steel said in the press release. The program is focused on developing various steel-intensive projects, such as special economic zones and connectivity projects, including rails and ports, the company said.

As the government ramps up its infrastructure drive, Indonesia’s steel consumption is forecast to rise from 23 million metric tons per year to 32 million mt/year for 2026-2029, Krakatau said, citing data from Widodo Setiadharmaji, a steel and mining industry observer.

Indonesian steel demand would average 36 million mt/ year over 2030-2034, increasing to 59.5 million mt/year over 2035-2039 before reaching 100 million mt/year over 2040-2045, according to Widodo’s data.

To help meet the growing steel demand, Krakatau Steel has outlined several targets for 2026, including commencing operations of a hot strip mill with a capacity of up to 120,000 mt/month.

The company also plans to begin operating a cold rolling mill with a capacity of up to 50,000 mt/month.

“We are ready to transform and expand capacity so that Indonesia is no longer dependent on imported steel,” Akbar Djohan, Krakatau Steel’s president and director, said in the press release.

Krakatau Steel seeks to scale up production after receiving financial support from the sovereign wealth fund Danantara Indonesia. The company has been operating below nameplate capacity since a 2023 fire at its hot strip mill.

Platts, part of S&P Global Energy, assessed SAE1006 grade hot-rolled coil at $479/mt CFR Southeast Asia on Jan. 5, up $1/mt from Jan. 2.