45% Domestic Steel Needs Still Import, Association: It's Not Ideal

INDUSTRY.co.id - Jakarta, The need for steel still can not be fulfilled by domestic producers. As is known, the current domestic steel products around 45% and the rest covered by imports.

 

Steel industry actors who are members of Indonesian Chamber of Commerce and Industry (Kadin) also acknowledged that domestic production is still not sufficient.

 

The Indonesian Iron and Steel Association (IIASA) Co-Chairman, Purwono Widodo, explained that the steel industry does not reject imports due to insufficient domestic production. However, according to him, ideally imported steel is not more than 30%.

 

"weight percentage must not be more than 30%, if more than that baseball balance, it means controlled imports, at least 10% is normal. As now 45% is actually baseball independent," said Purwono after the FGD event at Kadin Office, Jakarta (7 / 1/2018).

 

Therefore, he asked the government to be able to handle the problem of steel imports. This is so that the steel industry can become more developed.

 

"What we ask for the government is the protection of its unfare, so if we are carbon steel, it should import carbon steel, international prices we know it, so if should pay an entrance fee we pay it," he said.

 

Meanwhile, Senior Vice President of Krakatau Steel's Head of Marketing, Bimakarsa Wijaya, said that for steel imports, the portion has decreased, but in terms of percentage it is still quite high.

 

"The portion has decreased, we import it 55%, the production is 45%, now it has gone downhill, 2016-2017 the import has decreased, so 45%, the production is 55%," said Bimakarsa.

 

Bimakarsa said the number of national steel needs is increasing every year. In 2016, domestic demand is 12.7 million tons, and by 2017 it is estimated at 13.4 million tons.

 

"If for 2018, if the growth of 6-7%, the fall in 14 million tons. We expect no more than 50% of imports," he said.

 

He said there are a number of things that make steel still imported, such as the issue of cheaper prices than production. Although in fact, the industry can still produce it themselves.

 

"There are imports that we can not produce, in the middle (midstream) can be produced but still imported, it's cost factor, because it is cheaper. Right wire road for the nails, wire, it can actually, but China is cheaper Then for construction, like concrete, it prefer import, because it is cheaper, "he said.