Perpetrators of National Downstream Iron and Steel Industry Complain Minister of Trade Decree 22/2018

By : Ridwan And Aldi Firhand. A | Sunday, February 11 2018 - 21:37 IWST

Metal And Steel Industry
Metal And Steel Industry - Jakarta, A number of national iron and steel industry players are worried about the increasing number of imported products in the domestic market. This is in line with the issuance of Regulation of the Minister of Trade No. 22 of 2018 on Provisions on the Import of Iron and Steel.

Complaints against the regulation, one of which came from the Indonesian Fastener Association (AFI). The association currently has about 15 companies with a total employment of 6,000 people, among them producing screws, bolts, nuts, nails, and automotive parts.

"We are worried about the flood of finished products from downstream industries imported by general importers for traded purposes," said AFI Chief Rahman Tamin in Jakarta, Sunday (11/2/2018).

According to him, 22/2018 Minister of Trade Decree which eliminates the technical consideration of the Ministry of Industry, predicted can no longer control the supply and demand of industry in the country. "We feel that the Ministry of Industry's technical considerations are still needed in the process of importing iron and steel," Rahman said.

If the import of import licenses by general importers is not controlled, the importation of finished products from iron and steel will overwhelm and threaten the domestic industry. "Moreover, lartas supervision has shifted to the post border," he added.

In fact, Rahman said, the current national production of the iron and steel industry is going well and is planning to increase investment and capacity this year.

"Our utilization continues to increase, from 2015 to about 45 percent, to 55 percent in 2016, and a significant increase of 80 percent in 2017. Furthermore, our sales value reaches Rp3.2 trillion per year and we also target an additional investment of Rp300 billion this, "he said.

Meanwhile, Yusri Yusman, Executive Director of the Center for Energy and Resources Indonesia (CERI) explained that the new policy of Trade Minister Enggartiasto Lukito, signed on January 10, 2018, is considered blundering and needs to be reviewed.

Minister of Trade Decree 22/2018 is the third amendment of Minister of Trade Decree Number 82 of 2016 concerning Provisions on the Import of Iron or Steel, Alloy Steel, and its Derivative Products.

"Ministry of Industry technical consideration should be the main requirement, whether or not the import of raw materials, because ministry of industry is the institution that is very controlled data between the needs and supply of domestic derived steel industry products," he explained.

He also considered, the Minister of Trade Decree 22/2018 does not reflect the alignment of the domestic industry. In fact, the government under the leadership of President Joko Widodo is focused on improving the productivity and competitiveness of national industries.

In fact, through the industry downstream policy is capable of bringing a broader effect of increased value-added raw materials in the country, the absorption of local labor, and foreign exchange earnings from exports. Moreover, Indonesia is targeting production of 10 million tons of steel by 2025.

"The President should immediately intervene to review and correct the policies already issued by the Minister of Trade, we hope the government will continue to protect the interests of domestic industries in order to grow healthy and competitive to play an active role in encouraging national economic growth," he concluded .

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