Minister Of Industry Agus Gumiwang Happy Steel Boss Kimin Tanoto Expansion Of IDR 1 Trillion Through Mount Raja Paksi

Illustration (Photo: Doc. Antara)

JAKARTA - The Minister of Industry (Menperin) Agus Gumiwang Kartasasmita expressed his appreciation to PT Gunung Raja Paksi Tbk (GGRP) which made a new investment of Rp. 1 trillion for the utilization of the Light Section Mill machine. According to the Minister of Industry, this effort could increase production capacity to 500,000 tons per day.

"This is of course in line with the government's efforts to increase the national steel production capacity," he said at the inauguration of GGRP's newest facility in Bekasi, quoted on Friday, June 10.

The Minister of Industry added that the step of the private business entity should be applauded considering the courage to expand in the midst of the impact of the COVID-19 pandemic.

"This investment can increase the national profile steel production capacity by 500,000 tons, so it is expected to meet domestic profile steel needs amidst the incessant construction development in Indonesia," he said.

Furthermore, the Minister of Industry explained that the company owned by entrepreneur Kimin Tanoto could support new investments in the downstream sector.

"It is hoped that from the upstream to downstream sectors, there will be an increase in innovation and capability for the domestic industry," he said.

On the same occasion, Gunung Raja Paksi President Director Abednedju Giovano Warani Sangkaeng said that the additional investment of Rp1 trillion was the company's effort to increase production capacity with the latest technology and efficient energy use.

"We thank the Indonesian government for its support for the GRP so that it continues to grow and develop," he said.

For information, in the first quarter of 2022 the metal industry sector recorded a growth of 7.9 percent from the previous contraction of 0.49 percent.

This positive growth was also driven by the performance of the steel trade. Throughout 2021, the iron and steel trade balance (HS 72) experienced a surplus of 342,000 tons. The increase in exports from 2020 to 2021 was 51.8 percent, while the increase in exports from 2019 to 2021 was 133.6 percent.