Indonesia Is Still An Interesting Place For Steel Investment, IISIA Reveals The Reason

Chairman of The Indonesian Iron and Steel Industry Association (IISIA) or Association of Indonesian Iron and Steel Industry Purwono Widodo (right). (Photo: Theresia Agatha/VOI)

JAKARTA - Chairman of The Indonesian Iron and Steel Industry Association (IISIA) or the Indonesian Iron and Steel Industry Association Purwono Widodo said, Indonesia is still an attractive country to invest in steel.

"So, when we talk about the steel industry, it can't be short-term, long-term. So, in the long term, ASEAN, especially Indonesia, is still a very attractive country to invest in the world of taxation," said Purwono when met at the Kadin Tower, Jakarta, Monday, November 6.

Moreover, said Purwono, Indonesia already has a steel factory in Morowali, South Sulawesi, and Cilegon, Banten.

"This means that we have (two large steel factories) in Morowali, then some are in Cilegon. In Cilegon alone, there are already two (factories) that want to increase (productivity). So, the long term is like that," he said.

Therefore, he and ASEAN countries asked other countries, especially China, to make direct investments.

This is because the demand for the steel industry in Indonesia is still very low, namely, around 16 million tons per year. In fact, to achieve the target of Indonesia Gold 2045, continued Purwono, his party targets the demand for the steel sector to reach 100 million tons.

"If we look at Indonesia Gold's ideals in 2045, we should have fulfilled the capacity in 2045 of around 100 million tons per year, while currently the development of the steel industry is only 16 million," said Purwono.

"Imagine how we have to spur the development of the steel industry from 16 million which is currently 100 million demand in 2045. Right, not long after that," he added.

Thus, Purwono said, Indonesia's steel industry should not be long, it is still very interesting and he also asked for government support to help increase the production capacity of the industry.