The Government Urges the Automotive Industry to Use Local Steel

By : Ridwan And Aldi Firhand. A | Wednesday, August 08 2018 - 23:35 IWST

Car Illustration (Ist)
Car Illustration (Ist)

INDUSTRY.co.id - Cilegon - The Ministry of Industry has encouraged the automotive industry operating in Indonesia to be willing to use steel that has been produced domestically by PT Krakatau Nippon Steel Sumikin (KNNS) in Cilegon, Banten.

"By using steel from within the country, the level of their Domestic Components (TKDN) will automatically increase. Because some cars, like LCGC, the TKDN must be above 80 percent. Yes, they have to use domestic steel," said Director General of Metal Industries Transportation and Electronic Equipment Machine Ministry of Industry Harjanto in Cilegon, Tuesday. (7/8/2018)

Harjanto believes, with the exchange rate of the dollar against the rupiah that is still high, the industry will prefer raw materials from within the country.

 It is known, KNSS is engaged in the business of steel rolling with products produced in the form of cold-rolled steel, hot-dip galvanized steel for the automotive segment and galvannealed.

In addition, steel sheets are also produced for automotive outer panels and high strength steel sheets up to 1.2GPa class.

 KNSS itself has started operating in July 2017 with a production capacity of 480,000 metric tons / year. Through its technology, KNSS is able to produce high-quality and high-quality steel sheets to deal with the needs of high-standard cars.

 For this reason, Harjanto is optimistic that the products produced can be absorbed by the national automotive industry.

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