Coordinating Minister Airlangga: Development of IKN becomes National Steel Promotion Event

Photo: Doc. Antara

JAKARTA - Coordinating Minister for Economic Affairs (Menko Perekonomian) Airlangga Hartarto assessed that development project activities in the Indonesian Capital City or IKN can be a good marketing and promotional event for the national steel program.

"It has been proven in IKN, and I think IKN will be a good marketing for the steel program," said Airlangga in Jakarta, quoted from Antara, Wednesday, July 10.

According to him, when it comes to welding (electric welding), Indonesia has no rivals.

"I monitor several factories, if we send them to competitions, for example in Japan and others, the number one is definitely from Indonesia," he said.

Then the steel industry must definitely compete, because with its man-hour cost, Indonesia will definitely be more competitive too.

"So we don't have to be afraid of that, because labor costs in Vietnam are increasing, labor costs in China are increasing, and Indonesia with its demographic bonus, that is the time for us to take advantage of," said Airlangga.

In addition, he also said that the added value of national steel is also important.

"Added value is important, so we do not count goods from kilos alone, but from the total package of the project," he said

Airlangga hopes that national steel construction will be the host in its own country.

"I want us to commit to being a steel construction, to be the host in our own country," he said.

For information, the Chairman of the Indonesian Iron and Steel Industry Association (IISIA) or the Indonesian Iron and Steel Industry Association, Purwono Widodo, said that the need for steel to support the development of the Indonesian Capital City (IKN) until the final stage reached a total of 9.5 million tons.

The initial development of the IKN requires around 500,000 to 700,000 tons of steel. The need for steel will increase in the next stage of development with an estimate of more than 1 million tons.

Purwono said that his party together with the Ministry of Public Works and Public Housing (PUPR) are also working together to realize the demand for steel in the construction of the IKN.