Irdam Ahmad(1*), Mirad Fahri(2),

(1) Indonesia Defense University
(2) Indonesia Defense University
(*) Corresponding Author


The steel industry plays a pivotal role in driving the economy of a country because its production is used not only as raw material by many downstream industries, such as defense, machinery, and automotive industries, but also for infrastructure development, such as roads, bridges, and buildings. This study aims to analyze the role of the Indonesian steel industry in supporting the Indonesian defense industry and analyze the steel industry value chain, the competitiveness of domestic steel products against imported steel, and the relationship between the steel industry and the defense industry. This research used sequential mixed research methods, using raw data of manufacturing survey by Central Statistics Agency (BPS). Descriptive analysis, such as geometric growth rate, competitiveness analysis using the Trade Specialization Index (ISP), and analysis of the linkage between upstream and downstream steel industries using the 2010 Input-Output Table, employed in this research. The results showed that out of 16 million tons domestic demand for iron, more than half came from imports. Regarding the role of the steel industry in supporting the defense industry, it can be concluded that the contribution of domestic steel products is very small and has not been able to fully support the defense industry, because there are still many types of steel that must be imported to meet the needs for raw materials for the defense equipment. The 2010 Input-Output Table also shows that the value of domestic steel products used as raw material by the domestic weapons, ammunition, and metallurgy industries was only around IDR. 247.44 billion or only 0.14% of the total domestic use of steel.

Full Text:



Aritonang, S. (2019). Penentuan Kadar Ferum Untuk Plat Baja Kendaraan Tempur. Bogor.

BPS. (2015). Tabel Input-Output Tahun 2010. Jakarta: BPS. Retrieved from

Cahyani, C. A. (2014). Analisis Daya Saing Industri Besi Baja dalam Rangka Menghadapi ACFTA. Economics Development Analysis Journal, 3(2), 337–344.

Darmayanti, M. (2007). Analisis Struktur, Kinerja dan Kluster Industri Logam Dasar Besi dan Baja di Indonesia. IPB University, Bogor.

Haryadi, H., & Saleh, R. (2012). Analisis Keekonomian Bijih Besi Indonesia. Jurnal Teknologi Mineral Dan Batubara, 8(1), 1–16.

Indonesian Iron Steel Industry Association. (2015). Peranan dan Prospek Industri Baja Nasional. Jakarta. Retrieved from

Kementerian Perdagangan RI. (2009). ISP (Index Spesialisasi Perdagangan). Retrieved September 10, 2020, from website:

Kementerian Perindustrian. (2015). Rencana Induk Pembangunan Industri Nasional 2015 - 2035. Jakarta: Kementerian Perindustrian RI. Retrieved from

Prasetyo, P. E. (2010). Struktur dan Kinerja Industri Besi dan BajaIndonesia Tidak Sekuat dan Sekokoh Namanya. JEJAK Jurnal Ekonomi Dan Kebijakan, 3(1), 12–27.

PT. PAL. (2020). The Use of Domestic and Imported Steel Production at PT. PAL Indonesia (Persero). Surabaya.

PT. Pindad. (2020). Domestic and Imported Steel Usage Value at PT. Pindad 2015-2019. Bandung.

Suherman, I. (2016). Analisis Teknoekonomi Pengembangan Pabrik Peleburan Bijih Besi dalam Rangka Memperkuat Industri Besi Baja di Indonesia. Jurnal Teknologi Mineral Dan Batubara, 12(1), 23–44.

Zekelman Industries. (2007). U.S. Steel Industry Analysis: Importance of Domestically-Produced Steel to Overall National Defense Objectives and Economic and Military Security. Chicago.


Journal Terindex di Garuda

Office Address:
Lembaga Penelitian dan Pengabdian Kepada Masyarakat
Republic of Indonesia Defense University
Jl. Salemba Raya No.14, Paseban,Jakarta Pusat, Daerah Khusus Ibukota Jakarta 10440, Indonesia

Lisensi Creative Commons
Jurnal Pertahanan: Media Informasi tentang Kajian dan Strategi Pertahanan yang Mengedepankan Identity, Nasionalism dan Integrity is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.