THEBUSINESSBYTES BUREAU

NEW DELHI, JULY 8, 2026

In a significant step towards strengthening India-Indonesia industrial cooperation, state-owned steel giant Steel Authority of India Limited (SAIL) and Indonesia's PT Krakatau Steel (Persero) Tbk. have signed a Memorandum of Understanding (MoU) to explore setting up a joint venture for manufacturing stainless steel slabs in Indonesia. The proposed partnership aims to leverage Indonesia's abundant nickel reserves and SAIL's extensive steelmaking expertise to build a resilient stainless steel value chain serving both Indian and ASEAN markets.

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

The proposed collaboration combines the complementary strengths of the two companies. While Indonesia possesses some of the world's largest nickel reserves — an essential raw material for stainless steel production — SAIL brings more than five decades of expertise in steelmaking, project execution, and operating large integrated steel plants.

The initiative marks an important milestone in the expanding industrial partnership between India and Indonesia and reflects the shared vision of both countries to build stronger, more resilient manufacturing value chains.

The proposed joint venture is expected to cater to the growing demand for stainless steel in India and the ASEAN region while promoting value addition to Indonesia's mineral resources. It is also expected to facilitate technology transfer, industrial collaboration, skill development, and sustainable economic growth in both countries.

Project-specific details, including production capacity, investment structure, implementation timeline, and technology configuration, will be finalised after the completion of feasibility studies and securing the necessary approvals from both companies and their respective governments.

The collaboration represents another milestone in SAIL's strategy to strengthen its global footprint, diversify its product portfolio, and enhance its competitiveness in the international steel market.

Commenting on the development, SAIL Chairman and Managing Director Dr. Ashok Kumar Panda said, "This partnership reflects SAIL's commitment to looking beyond conventional boundaries and building capabilities for the future. As demand for stainless steel continues to grow across sectors such as infrastructure, mobility, renewable energy and manufacturing, access to reliable raw materials and strategic partnerships becomes increasingly important. We believe this collaboration with PT Krakatau Steel has the potential to create long-term value for both companies while strengthening the economic partnership between India and Indonesia."

"For SAIL, this initiative is not only about expanding into the stainless steel value chain. It is about building resilient supply chains, enhancing resource security, and supporting India's vision of becoming globally competitive under the Atmanirbhar Bharat initiative," he added.