This study investigates the role of steel industri on Indonesia’s economy through its
linkages with other sectors. It also discusses industrial strategies to develop steel
industry and trade. By using ackward and forward linkages methods, drawn from an
input-output table, the importance of iron and steel industry for other sectors of the
Indonesian national industry is clear. Moreover, investment in various sectors, the
price of steel, and the exchange rate affect the existence and growth of the steel
industry. Macroeconomy indicators, such as the consumption of cement, car and
retail sales, as well as the performance of the construction sector also give important
contributions to the growth of the iron and steel industry sector.
Keywords: steel, industry, consumption
Buletin Ilmiah Perdagangan, Vol. 5 No.1, Juli 2011