Steel industry should boost production capacity: VP

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Jakarta, Indonesianpost.com – Vice President Ma’ruf Amin called on the national steel industry to increase its production capacity in order to meet the domestic demand.

“Do not let the large (steel) needs be met by imports,” Amin remarked during the inauguration of a factory of steel company PT. Lautan Baja Indonesia in the Balaraja Industrial Area, Tangerang, Banten, on Friday, according to a written statement from the Secretariat of the Vice President.

According to Amin, the steel industry is the main supporter of infrastructure construction projects that are currently developing, including the construction of toll roads, airports, ports, railways, power plants, and oil refineries, including the new capital city Nusantara.

To this end, the vice president underlined the need to boost the capacity of domestic steel production in order to meet the needs.

He noted that in the last five years, along with massive development, the national steel demand has continued to rise by up to 40 percent.

In this regard, the vice president also emphasized several aspects related to efforts to increase the self-reliance of the national steel industry.

“First, firmly and consistently apply the domestic component level (rule) and mandatory Indonesian National Standards for steel products to support national development and realize the independence of the domestic industry,” he affirmed.

Amin assessed that firmness is increasingly necessary, considering that the government is intensively accelerating various infrastructure projects, including the construction of the new capital and the electric vehicle program.

Second, the vice president called on steel industry players to apply the concept of green industry in an effort to preserve the environment and sustainable resources.

“To achieve net zero emissions by 2060 or sooner, I ask the national steel industry to become an integral part of the circular economy that applies the green industry concept,” he stated.

Furthermore, Amin called on the steel industry to make efforts to increase the involvement of micro, small, and medium enterprises (MSMEs).

“As an industry that has multiplier effects, I ask the national steel industry to provide programs and incentives to advance MSMEs and support MSMEs to be able to enter the industrial supply chain,” he emphasized.

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