Players of the national
steel industry were optimistic that steel business in Indonesia would grow in
line with recovery of national economy. Global economy which was not fully
recovered should be considered by national steel producers to shift attention
to domestic market. The Indonesian Steel and Iron Association [IISIA] felt sure
that the Jokowi-JK Government would spor on development of infra-structure to
jack up Indonesia’s economic growth. IISIA was also expecting the next
Government could be more firm in encouraging use of domestic Component [TKDN]
for projects financed by the Government.
IISIA Executive Director Hidayat Trisepoetro stated on
Monday [I/9] the Government must control circulation of illegal iron and steel
products. He said that as the world steel market was not prospective, it was
advisable for national steel producers to aim sales at the domestic market.
Exploring the domestic steel market must be accompanied by stringent action in
controlling steel importing among others by law enforcement to forbid imported
steel products which was not SNI qualified and to abolish illegal practices in
steel importing.
Hidayat disclosed that IISIA was encouraging steel
producers to invest in the middle and downstream industry to fill in the vacuum
in steel supply now filled by imported steel as domestic resources was unable
to fulfill. IISIA data mentioned that so far domestic iron and steel production
was only posted at around 7.2 million tons while national demand was nearly 10
million tons. Shortage of steel must be filled with imported steel. However
Indonesia’s iron and steel production was predicated to increase up to 12
million tons in 2014 and 15 million tons in 2015 in line with growing demand
for steel for infra-structure projects.
Therefore the Government was playing strategic role in
strengthening competitiveness of the steel industry among others through
simplification of regulation for raw material importing and permit
applications. he further said that utility level of domestic iron and steel
production today which was only around 60% could be increased. Vietnam was one
of the countries in southeast Asia where growth of steel industry was notable.
Indonesia as a vast archipelago and high population should be a potential
market for Asia steel products as well as the world.
IISIA was insisting the Government to support the steel
industry sector whereby to be able to compete in the ASEAN Economic Community
[AEC] 2015. Hidayat stated that the execution of AEC 2015 would open
opportunity for iron and steel producers in southeast Asia to enter Indonesia
to compete against local products. To strengthen national steel industry and
aim at the domestic market was most important for stepping up market was most
important for stepping up market competitiveness.
The Government was asking the downstream steel industry
not to be worried about the limited prohibition on boron importing. Harjanto,
the Director General of Basic Manufacturing Industry, Ministry of Industry
stated that the downstream steel industry which basically used boron needed not
to worry about the restriction rule. Importing producers could still import
provided they could submit documents on the import of boron needed. Soon the
Government would survey whether imported boron steel were actually used or for
resale. The Regulation was to protect domestic industry. (SS)
Business News - September 5, 2014
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