Save Industry, Ministry Of Industry Encourages Local Steel To Use MBG Kitchen To Program 3 Million Houses

Steel (photo: Antara)

The Ministry of Industry (Kemenperin) encourages domestic steel to be used for the construction of several developments in President Prabowo Subianto's government program.

Spokesperson for the Ministry of Industry Febri Hendri Antoni Arif said, for example, development in the program of 3 million Free Nutrition Food (MBG) houses and kitchens or commonly known as the Nutrition Fulfillment Service Unit (SPPG).

Febri encourages domestic steel to be used for development in these programs.

"We hope that construction to build 3 million houses or also make a SPPG kitchen for the MBG program is made of metal or domestically produced steel industry," Febri said in the release of IKI September at the Ministry of Industry's office, Jakarta, Tuesday, September 30.

Febri emphasized that government spending should prioritize domestic products. "It is also a form of protection for the domestic industry, especially the steel industry," he said.

However, Febri admits that efforts to save the steel industry cannot only rely on the Ministry of Industry.

According to him, the rescue of the steel industry is also related to policies from other ministries/agencies. For this reason, Febri ensures that he will collaborate to find protection instruments for the steel industry.

Previously, President Director of PT Krakatau Steel (Persero) Tbk (KRAS) Muhamad Akbar revealed, the impact of the new import rate from US President Donald Trump on the national steel industry.

Donald Trump's policy of imposing a reciprocal rate of 19 percent for Indonesia plus import duties of up to 50 percent for steel products from any country entering the United States.

This condition is considered a threat to the local steel industry.

Because, with this 50 percent tariff, imported steel from China can target countries other than the United States, especially in developing countries, one of which is Indonesia.

Thus, it is feared that this will threaten the sustainability of the domestic steel industry.