Permintaan Besi Dan Baja Dalam Negeri Anjlok, Ini Biang Keroknya
JAKARTA - The Indonesian Iron and Steel Industry Association (IISIA) said that domestic demand for iron and steel fell significantly this year.
IISIA Executive Director Harry Warganegara said this was due to the decline in the government's budget for infrastructure development in the country. As is known, iron and steel are one of the main ingredients in the construction.
Harry said, for this year, the government has only allocated a budget for infrastructure development of 3 percent of the total APBN.
"Actually (the domestic demand for iron and steel) (down) is because the infrastructure, right, is down. So, if the steel iron is, right, (used for) the construction continues to be oil and gas. Our state budget, right, for construction, decreased (so) 3 percent from 30 percent last year," said Harry answering VOI's question after the Media Lunch event entitled "Industrial decarbonization and Labor Challenges in the Adaptation of the World of Work" in Jakarta, Tuesday, July 22.
According to Harry, the current government's focus is not on infrastructure development, but on the Free Nutrition Food Program, aka MBG.
"All (budgets) run to the Free Nutrition Food (program)," he said.
In addition, Harry did not deny that the decline in domestic demand for iron and steel was also due to budget efficiency by the government.
"So, it's automatically domestic shopping, right, it's important. Construction is important. Okay. Housing how? How about a building? How about a bridge? How about a road? What about IKN?" he explained.
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According to him, President Prabowo Subianto's 3 Million Houses Program has also not had an impact on domestic demand for iron and steel. The reason is, Harry assessed, the implementation of the program has not yet been seen.
"Yes, now, right, when is the implementation? Yes, right? It's okay, you know. So, slow down, friends slow down," explained Harry.
"Well, now my friends are running to exports. Some can export, yes, exports. Well, exports open non-traditional markets to Middle East (Central East) and Africa," he concluded.