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Indonesia's low-carbon steel industry development is at risk due to limited scrap metal supply following a temporary import ban linked to a radioactive contamination incident in October 2025. The shift towards electric arc furnace (EAF) technology, which relies on stable scrap metal availability, is seen as crucial for reducing production costs and carbon emissions.

The Executive Director of Celios, Bhima Yudhistira, warned that without clear import procedures, the transition to low-carbon steel could stall and burden businesses. The Indonesian Iron and Steel Association (IISIA) noted that the ban has strained the supply of both ferrous and non-ferrous metals, as local scrap quality and quantity are insufficient. Although the government agreed to allow imports if companies meet radiation monitoring requirements set in October 2025, no import recommendations have been issued yet, threatening operational continuity and potentially leading to job losses in the steel sector.