JAKARTA - Minister of Industry (Menperin) Agus Gumiwang Kartasasmita ensures the strengthening of the national steel industry structure to support economic growth and sustainable industrialization.
"The national steel industry has a strategic role in supporting infrastructure development, technology development, and strengthening downstream industries such as machinery, automotive, shipyards and the energy sector," said Agus quoted from an official statement, Tuesday, January 27.
Based on data from the Ministry of Industry (Kemenperin) in the last five years, national steel production increased by almost 98.5 percent compared to 2019 which was 8.5 million tons.
"This reflects the capacity of the national steel industry to continue to grow and become more competitive," he said.
To spur the performance of the national steel industry, the Minister of Industry also optimizes various strategic policies, including the implementation of trade security measures (trade remedies), the implementation of mandatory Indonesian National Standards (SNI), the provision of Certain Natural Gas Price (HGBT) facilities, the preference for the use of domestic products, the provision of fiscal incentives and the application of green industry principles.
"This policy is aimed at increasing the capacity and utilization of the national steel industry sustainably while strengthening the competitiveness of domestic steel products in the domestic and export markets," he said.
The Ministry of Industry conveyed its appreciation to PT Tata Metal Lestari and Tatalogam Group for their commitment to strengthening the national steel industry through sustainable investment.
The increase in production capacity through the construction of CGL 2 facilities is in line with the implementation of President Prabowo Subianto's Astacita, especially in strengthening industrial independence and supporting downstream.
"We hope that this facility can operate optimally, be competitive and make a real contribution to national economic growth and the strengthening of domestic industries," said Director of Metal Industry of the Directorate General of ILMATE, Ministry of Industry, Dodiet Prasetyo at the Groundbreaking ceremony for the CGL 2 facility of PT Tata Metal Lestari in Purwakarta, West Java, Monday, January 26.
Dodiet said, his party is optimistic that the construction of CGL 2 facilities will strengthen the upstream to downstream ecosystem in the national steel industry, so that it can increase added value in the country, which supports the growth of the national economy.
"Through this project, it will certainly increase national competitiveness, create job creation and also empower the local economy," he explained.
On the same occasion, VP of Operations PT Tata Metal Lestari Stephanus Koeswandi stated that the construction of CGL 2 is part of the company's commitment to strengthening the national steel industry (midstream).
"The industry has a crucial role as a link between the upstream and downstream industries. Without this sector being strong, the supply chain will be fragile and import dependence will continue to be high," he explained.
He claimed, PT Tata Metal Lestari is currently not only able to meet domestic needs, but has also exported steel sheet products to 25 countries, including the United States and European markets which have high quality standards.
"The construction of CGL 2 is part of our roadmap to achieve an installed capacity of up to 2.5 million tons of steel sheets gradually over the next 10 years, while supporting the program to Increase the Use of Domestic Products (P3DN) and present Made in Indonesia products with global standards," he said.
The new facility, continued Stephanus, will produce 250,000 tons of steel per year, which will complement PT Tata Metal Lestari's total production of 500,000 tons of steel per year that had previously been produced at CGL 1 Cikarang, Bekasi.
In the development of this facility, PT Tata Metal Lestari partnered with Tenova, an Italian technology company, to ensure the implementation of the best, efficient and environmentally friendly technology.
The construction of the CGL 2 facility is part of the commitment of continued investment from a total of Rp. 1.5 trillion which will add around 350 workers.
"Our project is the first line in Southeast Asia that uses zinc magnesium and zinc aluminum magnesium coating technology, so it can increase the life of steel use up to four times," he concluded.
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