Indonesian steelmaker senses opportunity in capital relocation

Gunung Raja Paksi president also sees chance in declining Chinese production

Abednedju Giovano Warani Sangkaeng, president of Indonesian steelmaker Gunung Raja Paksi, is optimistic about about demand in Indonesia even as it declines globally. (Photos by Nana Shibata)

NANA SHIBATA, Nikkei staff writer

July 19, 2022 11:30 JST

JAKARTA -- Indonesia's largest privately owned steelmaker will spend more than 1 trillion rupiah ($66.8 million) to increase production as demand for steel swells, in part due to construction projects related to the relocation of key government functions to the island of Borneo, Gunung Raja Paksi's top executive told Nikkei Asia.

"We expect demand from Indonesia's capital relocation to Nusantara," GRP President Abednedju Giovano Warani Sangkaeng said in a recent interview. The company sees "opportunity from the infrastructure there."