TEMPO.CO, Jakarta - The government plans to impose a 15 percent entry tax on steel imports in an effort to protect the national steel industry, which has been flooded by imports from China.

"The government will take several measures to protect the industry, and one of the plans that we have discussed is a 15 percent entry tax on steel imports," said Industry Minister Saleh Husin during a visit to Gunung Steel Group's plant in Cikarang on Thursday.

According to information from the Industry Ministry, there are 352 steel producers spread across Java, Sumatra, Kalimantan, and Sulawesi, which employ 200,000 people and produce 14 million tons of steel each year.

The Industry Minister said the two largest steel producers in Indonesia—Gunung Garuda and Gunung Raja Paksi—have a combined capacity of producing 1.3 million tons of steel per year.

Meanwhile, Indonesia's steel exports were valued at US$2.23 billion in 2014—up by 16.91 percent from US$1.91 billion in 2013—while the value of steel imports in 2015 declined by 0.19 percent to US$12.58 billion from US$12.6 billion in 2014.

Furthermore, continued the minister, domestic demand for steel had continued to increase from 7.4 million tons in 2009, to 12.7 million tons in 2014, and was expected continue climbing in direct correlation with the national economic growth.

"As such, in order to fulfill Indonesia's domestic demand for steel and reduce our dependence on imports, domestic steel producers need to refine the quality of their products and increase their production output," said the minister.

Husin stated that such developments were urgently needed to allow Indonesia's infrastructure projects, which are valued at Rp5,519 trillion and requires 17.46 million tons of steel until 2019, to continue.

ANTARA