New Delhi: In a major boost to India-Indonesia industrial cooperation, Steel Authority of India Limited (SAIL) has announced the signing of a Memorandum of Understanding (MoU) with Indonesia’s state-owned steel giant PT Krakatau Steel (Persero) Tbk. to explore the establishment of a joint venture for stainless steel slab production in Indonesia.
The announcement was made during Prime Minister Narendra Modi’s three-day visit to Indonesia (July 6–8), where both countries unveiled a series of strategic agreements aimed at deepening economic and industrial ties.
Strategic Partnership to Strengthen Stainless Steel Supply Chain
The proposed collaboration combines Indonesia’s vast natural resources with SAIL’s extensive expertise in steel manufacturing. Indonesia possesses one of the world’s largest reserves of nickel, a key raw material used in stainless steel production, while SAIL brings more than five decades of experience in operating integrated steel plants, executing large industrial projects, and manufacturing high-quality steel.
The proposed venture is expected to support the growing demand for stainless steel across India and the ASEAN region, while also promoting value addition to Indonesia’s mineral resources.
SAIL and Indonesian steelmaker PT Krakatau Steel announce signing of MoU to explore Joint Venture for Stainless Steel Slab Manufacturing in Indonesia as part of Hon’ble Prime Minister Shri Narendra Modi’s visit to Indonesia. pic.twitter.com/TYujgVJXwM
— Steel Authority of India Limited (SAIL) (@SAILsteel) July 8, 2026
Focus on Technology, Investment and Industrial Growth
Beyond manufacturing, the partnership is expected to pave the way for technology transfer, industrial cooperation, skill development, stronger supply chains, and sustainable economic growth in both countries.
Officials said the project’s capacity, investment model, implementation schedule, and technology configuration will be finalized after detailed feasibility studies and the necessary approvals from both governments and the participating companies.
The MoU is being viewed as another milestone in SAIL’s strategy to expand its international footprint and diversify its product portfolio in high-value steel segments.
SAIL CMD: Partnership Will Create Long-Term Strategic Value
Commenting on the development, SAIL Chairman and Managing Director Dr. Ashok Kumar Panda said the agreement reflects the company’s commitment to building future-ready capabilities through global partnerships.
“As demand for stainless steel continues to rise across infrastructure, mobility, renewable energy and manufacturing, secure access to critical raw materials and strategic international partnerships have become increasingly important. We believe this collaboration with PT Krakatau Steel will strengthen India-Indonesia economic relations while creating long-term value for both organizations,” he said.
Dr. Panda added that the initiative goes beyond expanding SAIL’s presence in the stainless steel segment.
“It is about creating resilient supply chains, improving resource security, and advancing India’s vision of becoming a globally competitive manufacturing nation under the Atmanirbhar Bharat initiative,” he said.
Strengthening India-Indonesia Economic Ties
The MoU comes at a time when India and Indonesia are intensifying cooperation in critical minerals, manufacturing, infrastructure, energy, and defence. Industry experts believe access to Indonesia’s abundant nickel reserves could significantly enhance India’s stainless steel ecosystem and reduce long-term raw material risks.
For SAIL, the proposed venture represents a strategic step toward becoming a globally competitive steel producer with a stronger international presence and greater participation in the rapidly expanding stainless steel value chain.
