Deputy Minister Of BUMN: The Steel Industry Needs To Be Provided With Incentives To Survive

JAKARTA - Deputy Minister of State-Owned Enterprises (BUMN) 1, Budi Gunadi Sadikin, assessed that there is a need to provide incentives for the steel industry during the COVID-19 pandemic. This is to avoid a decline in the performance of the steel industry.

"Almost all steel industries throughout the country are given incentives. So, in my opinion, if we don't provide incentives, we will be beaten up ourselves," Budi said in a virtual discussion, Wednesday, June 24.

Moreover, said Budi, after the global value chain pandemic, the dynamics will change significantly. Especially the product has an impact on society and the economy.

Furthermore, Budi said, many countries depend on steel imports from China because the price is the cheapest from other countries. However, when the COVID-19 pandemic and lockdown were imposed, China could not meet the steel needs of other countries.

"That is the risk of a pandemic which has not been counted as a loss. Perhaps now many countries have considered it as a result of which they have issued several incentives to reduce the risk of a pandemic like now. We should do that," he said.

In addition, Budi appreciated the achievements made by PT Krakatau Steel (Persero) Tbk in improving its performance. This is evident from the profits obtained in the first quarter of this year.

Furthermore, Budi said, this steel company was one of the tasks entrusted directly by President Joko Widodo to monitor its performance in order to improve.

"Indeed, I am very amazed. Krakatau Steel is one of the special tasks that the president gave me when he was appointed (deputy minister, red) to improve his condition and it has been a problem for a long time," he said.

According to Budi, Krakatau Steel has shown changes since Silmy Karim was appointed as the President Director of this state-owned company. He considered that Silmy's plan to improve in the areas of finance, business and organization had proven to be good for the company.

"Almost every week we discuss to ensure that the transformation program can take place with the board of directors and commissioners of Krakatau Steel. I monitored the update at the beginning of this year that Krakatau Steel has shown significant improvements," he explained.

In addition, Budi hopes that in the future, Krakatau Steel will be able to maintain its positive performance. Because, maintaining is more difficult than pursuing a positive record.

"What improves is one thing but maintaining goodness in the future is one thing that is more difficult. I see that all of Krakatau Steel can survive this pandemic safely, although a little, God willing, is safe," he said.