The Government
continued to spur on use of local components for infra structure projects. The
Ministry of Industry Saleh Husin stated in Jakarta on Thursday (11/6) that use
of local made products were already produced at home for all sectors. Saleh
reminded the urgency of using local products in infra-structure projects in
Indonesia, to energize component industry at home to minimize import materials.
Minister Saleh criticized Government
owned company Pertamina (Persero) who prioritized use of imported steel for
their projects. He stressed that such was contrary to the Government’s policy
to enhance use of domestic components. Saleh showed as an example the gas
transmission project from Gresik, East Java too Semarang, Central Java. The
project belonged to Pertagas, a subsidiary company of Pertamina convering a
distance of 270 kilometer and undertaken by PT WIKA, Remaja Bangun Kencana and
Kelsri.
Minister Salih said that BUMN should
prioritize on using domestic steel as in Batam, Cilegon and Bekasi. If
Indonesia was not able to produce steel then import was permissible. “As long
as raw materials could be produced, at home, why import?” Saleh said;
Therefore Saleh urged, soon projects
should prioritize use of local components. One of them was the 35,000 megawatt
powerhouse. Domestic components could be used to the maximum. Moreover national
industry was able to produce turbines, travel and transmission cables The same
was with heavy equipments for infra structure.
Saleh admitted that use of domestic
stall was still limited in projects financed by the Government. For that matter
the Ministry of Industry would involve BPKP to audit level of local content
(TKDN). He explained that he was scheming up an MoU worth BPKP on auditing of
TKDN for BUMN using Government funding.
Saleh again reminded that the iron
and steel company was among the prioritized industries playing an important
role in the development of other industries considering that steel was the
basic raw materials for other industries like marine construction, oil and gas,
heavy equipments, automotives and electronics. The demand for domestic steel
increased from 7.4 million tons in 2009 to become 12.7 million tons in 2014 and
would constantly increase in line with national economic growth.
Therefore, the Minister said, to
meet the need for domestic steel and minimize dependency on imported steel,
domestic steel producers needed to step up steel by quality and quantity. This
was to meet the need of infra structure development in Indonesia which was
predicted to be worth Rp.5,529 trillion until 2019 and needed steel weighing
17,46 million tons.
In developing national iron and
steel industry, the Ministry of Industry underscored that the Government was
adopting some strategies like mandatory SNI certification, trade remedies,
import tax, P3 DN and the proposal to reduce gas and electricity cost to
maximize performance of national steel industry. (SS)
Business News - June 17, 2015
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