Gov’t Announces Steps to Increase Raw Materials for Iron, Steel Industry

President Jokowi leads a Limited Meeting on Raw Materials Supply for Iron and Steel Industry at Presidential Office, Jakarta, Wednesday (12/2). (Photo: Rahmat/PR)

Measures should be taken to increase the country’s raw materials supply for iron and steel industries, President Joko “Jokowi” Widodo has said.

“First, enhance the ecosystem for the raw materials, starting from supply and price stability including, gas price,” President Jokowi said during a Limited Meeting on Raw Materials Supply for Iron and Steel Industry at the Presidential Office, Jakarta, Wednesday (12/2).

“Raw materials from national mining products also need to be prioritized in order to increase their added value in the domestic market. This step will not only cut imports, but may also provide employment,” the President added.

On that occasion, the President also asked for a thorough review of several regulations which regulate the import while still manages environmental aspects.

“Another one is related to gas price for industries. This issue has been addressed several times and the result will be decided soon,” President Jokowi said, while also ordering his Ministers to pass Presidential Regulation Number 40 of 2016 on Gas Price for tIndustry in the near future.

“I have also ordered relevant stakeholders to calculate the impacts of imported steel on quality and price competition of domestic steel,” he said.

The President also mentioned the application of SNI (Indonesia National Standard) to protect domestic steel industry and its consumers by filtering the low quality imported steel.

Import on steel ranks third in the top 3 import list, making it one of the main sources of the country’s trade balance deficit, President Jokowi added.

President Jokowi further said that domestic industry can produce similar quality with those imported steel, adding that the Government continues to encourage domestic industry to be more competitive and to increase production capacity by improving business management, renewing machinery technology, as well as adding supply of the raw materials. (TGH/EN)

Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas