RI Flooded With Imported Steel, One Large Factory Rolls Out

JAKARTA - The domestic steel industry is getting more and more depressed. The entry of steel from abroad not only erodes the domestic industry, but also threatens the livelihoods of thousands of workers.

Chairman of the Indonesian Society of Steel Construction (ISSC) Budi Harta Winata revealed that this imported steel raid made the factory in Surabaya, East Java out of business.

"Ispatindo, Surabaya (closed). (The affected employees) are thousands. From last year 2024 (closed)," he said at a press conference, in Jakarta, Friday, September 12.

In fact, Budi said that based on the information received, there is a factory in the Bekasi area, West Java which is also in danger of going out of business.

"Those in Bekasi are also about to close, he said," he said.

Budi also criticized the trend of direct foreign investment or FDI. He said the investment did not have a multiplier effect on the local economy.

Furthermore, Budi said this condition is different from before, where when there is an incoming investment it will involve business actors for the construction of the factory.

"It means, with investment in this case, we don't get any work either. Just watch it," he said.

Budi said that if the import steel attack was not immediately addressed, it would have an impact on the sustainability of the domestic steel industry. Including termination of employment (PHK).

"The impact is the loss of the livelihood of the welders who have been working with us all this time. The loss of workers, especially in the steel construction sector. Because in us, 98 percent of the employees we studied from scratch," he said.

"So we are like the Job Training Center (BLK). That is, with the rampant steel construction coming in from outside, they have nothing to do now," he continued.