Better National Steel Quality, Construction Entrepreneurs Ask The Government To Close Imports

JAKARTA - The Association of Indonesian National Construction Implementers (GAPENSI) assesses that the steel industry in Indonesia is actually capable of meeting domestic needs. In fact, the quality of domestically produced steel is considered better than imported steel.

Secretary General of BPP GAPENSI Andi Rukman Nurdin said, Indonesia is currently busy building infrastructure, but has forgotten to support its steel industry. Construction entrepreneurs always complain about this is that the steel production received is not labeled with the Indonesian National Standard (SNI).

"Our need for the steel industry is 15 to 20 million per metric ton. We are capable. We are very capable of doing that. With a firm note that the government is firm on how to protect steel players from shutting down imported taps," he said in a virtual discussion, Thursday, July 9 .

Andi said that the quality of domestic products is much better than steel imported from China, Vietnam and Thailand. However, in terms of price, these two countries are far superior. The reason for this price is what makes entrepreneurs prefer imported steel.

Furthermore, Andi said, Indonesia was also able to compete in price by increasing production. So, it can make the price much cheaper than it is today.

"Our production is much better. We also have to compete against price. We have Krakatau Steel which is quite extraordinary, has Mount Garuda. But why is this import policy still being opened? This is a problem," he explained.

However, Andi did not deny that not all steel could be produced in the country. There are still some that must be imported. Even so, slowly more goods have to be produced domestically.

"I hope to the Director General (ILMATE) of the Ministry of Industry that there are products that we need to import, such as our railroad tracks, but we still need imports, but if we can produce other things, Krakatau Steel is capable," he explained.

On the same occasion, Head of Division 3 BPP HIPMI Trade, Industry, and ESDM as well as Director of the International Gobel, Rama Datau, said that the COVID-19 pandemic has hit the industry. Coupled with the implementation of a large-scale social restriction (PSBB) policy, economic activity has stalled so that market demand is very low.

"Many people say this steel industry is the mother of industry that supports other industries. So it must be paid attention together. Moreover, we see that the steel industry is a lot of attacks from imported steel. Maybe it can help protect the steel industry in the future from products. -imported products, "said Rama.

For your information, based on data from the Central Statistics Agency (BPS), steel imports as of 2019 reached IDR 753 trillion. This is because the steel industry is the mother of all industries. This condition is considered a cause for concern, because Indonesia has a potential source of extraordinary iron ore.