Kemenperin Opens Rp 300 Billions Subang Steel Wire Plant To Reduce Imports

Kemenperin Opens Rp 300 Billions Subang Steel Wire Plant to Reduce Imports

May 7, 2026 7:08 PM . 3 min read

SUBANG, Jakartaweekly.com – The Ministry of Industry continues to drive the transformation and independence of the national metal industry through strategic investment. During a Grand Opening ceremony held in Subang on May 6, 2026, the Minister of Industry, represented by Deputy Minister Faisol Riza, officially inaugurated the galvanized iron wire production facility owned by PT Beka Wire Indonesia. This facility is expected to bolster the independence of the national iron and steel industry, particularly in the wire segment, while strengthening the supply chain for downstream sectors including automotive, agriculture, energy, and construction.

Investment Realization and Production Capacity

PT Beka Wire Indonesia has recorded a realized investment of IDR 300 billion, with a future potential increase reaching IDR 500 billion. The factory is designed with a production capacity of 36,000 tons per year, specializing in both coated wire products—such as hot-dip galvanized, zinc-aluminum, and bezilum—and non-coated wire varieties. As part of a commitment to the global market, the company has allocated 40 percent of its total production for export to Southeast Asia, Latin America, Europe, and Australia.

Addressing the National Trade Deficit

This investment serves as a critical intervention in response to the challenging trade balance within the steel wire commodity sector. Over the last five years, the export performance of iron and steel wire has seen a sharp decline, with volumes dropping 48.5% from 22,225 tons in 2021 to 11,442 tons in 2025. During the same period, imports increased slightly, causing the trade deficit to widen significantly. The presence of PT Beka Wire Indonesia is intended to reverse this trend by encouraging import substitution and expanding domestic production capacity.

Strategic Economic Growth and Industrial Policy

The inauguration of this plant aligns with the positive growth of the manufacturing sector, which reached 5.04% in the first quarter of 2026. In the base metal industry specifically, investment reached IDR 64.88 trillion during the same period, contributing 13% to total national investment. To maintain this momentum, the government is implementing six strategic pillars: market protection through trade remedies, energy price certainty via the HGBT scheme, mandatory SNI standards, supply chain stability, the prioritization of domestic products in national projects, and fiscal incentives such as tax holidays.

Regulatory Framework for Global Competitiveness

To further control the flow of imports, the Ministry of Industry has enforced Ministerial Regulation Number 1 of 2024, which manages technical considerations for importing steel and its derivatives. This regulation ensures that imports are balanced against the needs for raw materials and capital goods without harming local producers. Through the synergy of government regulation and private investment, Indonesia aims to transition its metal industry into a more sustainable, self-sufficient, and competitive player within the global supply chain.