National Steel Needs Achieve 100 Million Tons By 2045, Here Are The Challenges

Illustration. (Photo: Doc. Antara)

JAKARTA - The Indonesian Iron and Steel Industry Association (IISIA) or the Indonesian Iron and Steel Industry Association projects that the national steel demand will reach 100 million tons by 2045.

"Currently, the development of the national steel industry is expected to increase every year. IISIA projects that the national steel demand in 2045 is estimated at 100 million tons with an investment value of up to 100 billion US dollars," said IISIA Chairman Purwono Widodo to reporters at Kadin Tower, Jakarta, Monday, November 6.

Purwono said this was a good potential for the steel industry, considering that the government is currently actively carrying out national development projects. "Which steel is one of the main materials," he said.

Even so, the national steel industry also faces challenges, including the low level of utilization of national steel production capacity.

"Another challenge that needs to be faced is that the steel industry must be able to produce low-carbon steel products in an effort to implement Green Industry towards Net Zero Emission which is targeted to be achieved by 2050," said Purwono.

Meanwhile, said Purwono, the amount of steel consumption in the country has reached 17.9 million tons as of October 2023.

"We calculate nationally, steel consumption will be at 17.9 million tons in 2023, an increase of about 5 percent from 2022 and for production at 14.4 million tons for 2023," he said.

According to him, collaboration between industry players, associations, the government, and all stakeholders is needed to move the national steel industry. Thus, Indonesia can suppress steel imports in the future.

"The steel industry cannot stand alone and support is not only from the government. If we support everyone, we want to build, make plans, yes, to the local government," he said.