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Minister, Krakatau Steel in Talks on Steel Industry Development

15 September 2014 20:30 WIB

TEMPO.CO, Jakarta - Industry Minister M.S. Hidayat has received a visit from Krakatau Steel (KS) president director Irvan Kamal Hakim, who came to discuss the prospects of Indonesia’s domestic steel production. 

Irvan came as an envoy from the national steel industry to lobby for greater support from the central government. 

“First of all, we are conveying KS’ plan for a joint-venture with Krakatau Posko Energi (KPE)a producer of electricity,” said Irvan after meeting with M.S. Hidayat at the Industry Ministry office in Jakarta on Monday. 

Irvan hoped the ministry would consider giving the sector more support so Indonesia’s steel industries can flourish, such as by awarding them tax holidays. 

According to Irvan, the minister has promised to discuss KS’ demands. “Our plant has an electric generation capacity of 200 mega watts, and the minister has agreed to support the idea, but the technicalities still need to be discussed,” said Irvan. 

Irvan also thanked Hidayat on behalf of the steel producing giant for his role and support for Indonesia’s national steel industry during his time as Industry Minister. 

“Although there are definitely rooms for improvements, we have also seen a number of successes. On behalf of the association and management of Krakatau Steel, we would like to thank him for his services during his time as minister,” said Irvan. 

The final issue discussed was the ministry’s policy on Local Content (TKDN), because the implementation of the policy was beset by fraud. According to Irvan, the ingredient for steel production needs to be exempted from import quotas and restrictions.

“I understand that this is an effort to consume domestically-made products,” said Irvan. 

ANTARA



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