The National Steel Industry: A Key Pillar of Indonesia's Infrastructure Advancement

Jakarta, INTI - The national steel industry continues to show outstanding performance as a key pillar of infrastructure development in Indonesia. As the "mother of industries," the steel industry plays a strategic role in meeting the needs of other industrial sectors. The Indonesian government actively promotes the advancement of the steel industry through various policies, including commodity downstream policies.

According to the latest data, Indonesia's iron and steel exports reached USD 26.7 billion in 2023. This figure shows a significant increase compared to previous years. The performance of the iron and steel trade balance has also improved from a deficit of USD 3 billion in 2019 to a surplus of USD 15.3 billion in 2023. This is in line with the growth of the basic metal industry from Q1-2023 to Q1-2024, ranging from 11% to 18%, and the increase in basic metal product exports from 8.74% in 2019 to 16.74% in 2023.

Strategic Role of the Steel Industry in National Development

Coordinating Minister for Economic Affairs, Airlangga Hartarto, at the Seminar and National Working Meeting (Rakernas) III of the Indonesian Society of Steel Construction (ISSC) on July 10, 2024, expressed appreciation for the progress of the national steel industry. "This steel industry is excellent because it can be the host in its own country. For example, IKN, all steel construction is made in Indonesia, and this is our advantage. We are becoming a country with strong competitiveness in iron and steel," said Coordinating Minister Airlangga.

Coordinating Minister Airlangga also highlighted the success of a construction company in Batam that successfully exported 130 wind turbines. These wind turbines will be installed in northern Long Island, New York, with a planned capacity of 2.1 Gigawatts. This achievement demonstrates the capability of Indonesia's steel industry to compete in the global market.

Increasing Capacity and Quality of the Steel Industry

With the achievements of steel commodity exports to various countries, such as Sydney and New Zealand, Coordinating Minister Airlangga emphasized that Indonesia's steel industry is increasingly recognized internationally. "With continuously increasing demand, the target for the steel industry can be raised to 20 million tons, considering consumption is estimated to rise to 18-19 million tons," added Coordinating Minister Airlangga.

In addition to increasing production capacity, Coordinating Minister Airlangga also stressed the importance of enhancing manufacturing capabilities for faster processes. The government has provided several incentives, such as exemption from import duties and VAT exemption, to ease the burden on industry players regarding capital goods.

Technology and Human Resources as Key Factors

Coordinating Minister Airlangga also emphasized that mastering technology is crucial in promoting the advancement of the steel industry. With the demographic bonus that Indonesia will experience, it is hoped that there will be more superior human resources in technology. Currently, Indonesia's steel industry already possesses welding capabilities recognized as among the best in the world.

In closing his speech, Coordinating Minister Airlangga called on all parties to commit to making Indonesia's steel industry the host in its own country. "I congratulate you on the organization of this National Working Meeting and I want us to commit to making our steel industry the host in our own country," concluded Coordinating Minister Airlangga.

Government and Stakeholder Support

This ISSC National Working Meeting was also attended by various officials and stakeholders, including the Deputy for Trade and Industry Coordination of the Coordinating Ministry for Economic Affairs, the Director General of Construction Development of the Ministry of Public Works and Housing, the Director of Construction Institutions and Resources of the Ministry of Public Works and Housing, the Head of the Center for International Trade Policy of the Ministry of Trade, the Chairman of the Indonesian Ulema Council (MUI), the Chairman of the ISSC Advisory Council, the Chairman of the ISSC Supervisory Board, the ISSC Chairman, as well as representatives of associations and supply chain partner members.

With full support from the government and relevant stakeholders, the national steel industry is expected to continue growing and contributing significantly to Indonesia's economy. The transformation occurring in this industry is also expected to bring positive impacts to other sectors that depend on steel as a primary raw material.

In closing, we invite you to attend and witness the Indonesia Technology and Innovation 2024 (INTI 2024) exhibition, which will take place at JI-EXPO from August 12-14, 2024. INTI is the largest technology and innovation exhibition in Indonesia, showcasing the latest products and innovations in various industrial fields. For more information, you can visit the official exhibition website at https://inti.asia/.

Don't miss the opportunity to see firsthand the latest innovations and technologies on display at INTI 2024. Support the steel industry and other industries to progress and develop together!