In a significant step towards strengthening the strategic industrial partnership between India and Indonesia, Steel Authority of India Limited (SAIL), the country's largest Maharatna public sector steel producer, and Indonesia's leading steelmaker PT Krakatau Steel (Persero) Tbk. have announced the signing of a Memorandum of Understanding (MoU) to jointly explore the establishment of a Joint Venture (JV) for manufacturing stainless steel slabs in Indonesia.

 

The announcement was made during the high-level engagements between the Governments of India and Indonesia as part of Prime Minister Shri Narendra Modi's official visit to Indonesia from July 6 to 8, 2026.

 

The proposed collaboration seeks to leverage the complementary strengths of the two companies. Indonesia possesses one of the world's largest reserves of nickel, a critical raw material for stainless steel production, while Steel Authority of India Limited brings more than five decades of expertise in steel manufacturing, project execution and the operation of large integrated steel plants. The proposed partnership marks a major milestone in the expanding industrial cooperation between the two countries and reflects their shared commitment to building resilient and globally competitive manufacturing value chains.

 

The proposed Joint Venture is expected to support the growing demand for stainless steel in India and the Association of Southeast Asian Nations (ASEAN) region while promoting value addition to Indonesia's mineral resources. The collaboration is also expected to facilitate technology transfer, industrial cooperation, skill development and sustainable economic growth, creating long-term strategic benefits for both countries.

 

The companies stated that details relating to the project's production capacity, investment structure, implementation schedule and technology configuration will be finalised after the completion of feasibility studies and the receipt of all necessary approvals from the respective organisations and the Governments of India and Indonesia.

 

Describing the development as a strategic milestone, Chairman and Managing Director of Steel Authority of India Limited, Dr. Ashok Kumar Panda, said the partnership reflects SAIL's commitment to expanding beyond conventional boundaries and preparing for future opportunities. He said that with demand for stainless steel rising steadily across infrastructure, mobility, renewable energy and manufacturing sectors, reliable access to raw materials and strategic international partnerships have become increasingly important. He expressed confidence that the collaboration with PT Krakatau Steel would generate long-term value for both companies while further strengthening the economic partnership between India and Indonesia.

 

Dr. Panda further said the initiative represents more than an expansion into the stainless steel value chain. It is aimed at developing resilient supply chains, enhancing resource security and supporting India's vision of becoming a globally competitive manufacturing economy under the Atmanirbhar Bharat initiative.

 

Steel Authority of India Limited is a Maharatna Central Public Sector Enterprise and one of India's largest steel producers. With five integrated steel plants, three special steel plants and an extensive nationwide presence, the company caters to key sectors including infrastructure, railways, defence, energy, engineering and construction. Driven by its commitment to innovation, sustainability and nation building, SAIL continues to play a pivotal role in supporting India's industrial growth and economic development.

 

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