Coordinating Minister Airlangga Hopes Indonesia's Steel Industry Production Will Be Increased To 20 Million Tons

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said the government had made various policies to encourage the progress of the steel industry, one of which was through commodity downstream policies.

Airlangga said that the national iron and steel industry had shown an increase with the achievement of the export value of iron and steel amounting to 26.7 billion US dollars in 2023.

In addition, the performance of the iron and steel trade balance also improved from the USD 3 billion deficit in 2019 to a USD 15.3 billion surplus in 2023.

Then followed by growth in the basic metal industry from the first quarter of 2023 to the first quarter of 2024 in the range of 11 percent to 18 percent and an increase in exports of basic metal products from 8.74 percent in 2019 to 16.74 percent in 2023.

This steel industry is good because it can host in its own country. For example, IKN, all steel construction is made in Indonesia and this is our advantage. We become a strong competitive country in iron and steel," he said in his statement, Wednesday, July 10.

In addition to highlighting the development of the steel industry, Airlangga conveyed the progress of one of the construction siblings in Batam where 130 wind turbines were successfully exported.

Meanwhile, the wind turbine will also be the first to be installed in north Long Island, New York, with a planned capacity of 2.1 Gigawatts.

Considering the export achievements of steel commodities that have been carried out in several countries, including Sydney and New Zealand, Airlangga said that the steel industry in Indonesia is getting stronger and taken into account by various countries in the world.

With increasing demand, Airlangga appealed for the steel industry's target to be increased to 20 million tons, considering that consumption is expected to increase to 18-19 million tons.

Furthermore, Airlangga also conveyed the need for an increase in the ability of manufacturing or manufacturing to be faster.

Regarding business actors' concerns about capital goods, the Government has also provided a number of incentives that can relieve industry players such as exemption from import duties and exemption from VAT.

Airlangga emphasized that mastery of technology is also an important aspect in encouraging the progress of the steel industry, especially since Indonesia will also experience a demographic bonus in the future so that it is hoped that there will be more superior human resources related to technology.

"Until now, the Indonesian steel industry itself has welding capabilities which are one of the best in the world," Airlangga concluded.