TEMPO.CO, Jakarta - The domestic steel productivity in 2017 is expected to increase by 5 percent compared to the previous year, considering that demands of domestic steel in 2016 reached 12 million tons, and the industry could only manage to provide 6-7 million tons.
Meanwhile, the domestic steel production capacity only stands at 8-9 million tons per year due to the pressure from imported steel from China.
The government has initiated a number of efforts to suppress steel imports, including passing a regulation on steel and iron imports in early 2017, as well as providing an incentive for energy efficiency.
Data from the Trade Ministry shows that the metal and steel export value in 2016 reached US$ 1.8 billion which increased by 51 percent year-on-year (yoy). Meanwhile, metal and steel import values reached US$ 6.2 billion, or down by 2 percent yoy. Therefore, there was still an import surplus amounting to US$4.4 billion.
Metal and steel imports contributed 5 percent to the total non-oil and gas import value in 2016.
“The high cost of energy and logistics has become a problem that needs to be addressed in order support the domestic steel industry,” says a report released by HP Financials on Tuesday, May 23, 2017.
BISNIS.COM
