Ministry of Industry Urges Accelerated Development of Steel Clusters in Three Areas

INDUSTRY.co.id - Jakarta - The Ministry of Industry encourages the acceleration of steel industry cluster development in three areas, namely Cilegon, Banten, Batulicin, South Kalimantan, and Morowali, Central Sulawesi.

Production from the integrated manufacturing group is expected to meet the needs of domestic and export markets and realize an independent state of steel imports.

"Through this cluster approach, because of its complementarity, the resulting product will be more competitive and spur innovation and product quality improvement according to consumer demand at this time," said Minister of Industry of Airlangga Hartarto in Jakarta, Saturday (13/1/2018).

Minister explained, the steel industry is categorized as the parent sector because the product is the main raw material needed for manufacturing activities in other industrial sectors.

In fact, he added, steel is also needed as an important component in the broad infrastructure sector which includes building and property, roads and bridges, telecommunications, and electricity.

Therefore, the government is targeting production of 10 million tons of steel by 2025 through the development of steel industry clusters in Cilegon, Banten.

"With the cluster of 10 million tons of investment value reaching USD4 billion, giving multiplier effect through job creation, fulfillment of domestic industrial raw materials, and provide benefits to the national economy, especially Banten," said Minister.

In addition to Cilegon, Ministry of Industry also has a steel-based industrial development program in Batulicin, South Kalimantan. The area that stands on an area of ​​955 hectares is projected to absorb as many as 10 thousand workers.

"There is now a steel industry that operates, namely PT Meratus Jaya Iron and Steel and equipped with ferry port facilities," he added.

In preparation of ready-to-work human resources in Batulicin industrial area, the Ministry of Industry has initiated Polytechnic development this year, so that local children can play a more active role in building steel industry in the region.

The next project, namely the development of nickel-based and stainless steel industries in Morowali Industrial Estate, Central Sulawesi. This area has a land area of ​​2,000 hectares, with the realization of investment throughout the year 2015-2017 amounting to Rp80 trillion and is targeted in 2019 reached Rp105 trillion.

In addition, in the period 2015-2017, the region has absorbed a workforce of 15 thousand and is targeted in 2019 will open opportunities more than 40 thousand workers.

From the area, it is also targeted to produce 4 million tons of stainless steel per year, and a carbon steel plant with a capacity of 4 million tons per year.

"If stainless steel production reaches 4 million tons per year, Indonesia will become the second largest producer in the world or equivalent production in Europe," said Minister.