Opening IISIA Business Forum 2023, Airlangga Calls Steel & Iron Industry Growing 10.86 Percent

Coordinating Minister for the Economy Airlangga Hartarto. (Photo: Theresia Agatha/VOI)

Coordinating Minister for the Economy Airlangga Hartarto opened the IISIA Business Forum (IBF) 2023 event at ICE BSD, Tangerang, Thursday, November 9.

In his remarks, Coordinating Minister Airlangga said that the performance of the domestic steel industry continues to show a positive trend in line with the high demand in the automotive sector.

"We see the steel industry growing 10.86 percent yoy in the third quarter. Then, the contribution of the iron and steel sector, including nickel, increased from 2019 to close to 8 billion US dollars and in 2022 yesterday 8.5 billion US dollars," said Airlangga at the opening of the IISIA Business Forum (IBF) 2023 event, Thursday.

Airlangga said that demand for steel and iron in the automotive industry increased by 1.5 million tons. Currently, he said, only 900,000 tons can be met from within the country.

"A total of 900,000 tons are still imported. Therefore, 900,000 more can still be pursued," he said.

He added that demand for steel and iron in the construction sector is also high, but the domestic industry has not been able to fulfill it.

"The industrial consumption is close to 16 million tons, while the production is only 12 million tons. We know that Krakatau Steel has only 3 million tons and the target is 10 million tons," said Airlangga.

On the other hand, Airlangga also warned of the global oversupply of the steel industry, which Indonesia is the main target for this sector.

If there is no anticipation, Indonesia is feared to be able to flood steel imports and ultimately hit the domestic industry itself.

"The steel industry has an excess supply of around 632 million tons. Therefore, Indonesia as one of the markets (markets) must be careful because the oversupply is our neighbor. Of course, seeing that this will be more than 30 percent of global production, we have to keep our industry from being hit by oversupply," he said.

Airlangga hopes that the 2023 IBF is expected to spur the national steel industry in the future. So that what the government aspires to towards Indonesia Gold 2045 can be realized.

"I support today's forum with the theme 'State Industry for National Independence'. With the existing exhibition, hopefully our steel industry will be stronger because this steel industry produces Gatot Kaca. Besides being strong, being able to fly, now it's just strong, we are still waiting for when this industry will fly to generate foreign exchange," he concluded.