Steel import cause of trade balance deficit: Jokowi

Jakarta (ANTARA) - Steel imports have become one of the main causes of the trade balance deficit and current account deficit in Indonesia, President Joko Widodo (Jokowi) has stated. The current data indicates that steel imports have entered three major of Indonesia's total import numbers, President Joko Widodo said during the limited meeting with the topic of raw material availability for steel and iron industry at the President's Office in Jakarta, Wednesday.

"This becomes one of the main causes of our trade balance deficit and current account deficit. Moreover, we can produce imported steel in the country," the President said.

The meeting also discussed the availability of raw materials for the steel and iron industry since it is one of the national strategy industries which is required to build infrastructure.

"Therefore, the utility of domestic steel mills is very low and the domestic steel industry is disrupted," he said.

The President emphasized that the iron and steel industry should be encouraged to be more competitive and maximize its production capacity, resulting in improved corporate management, renewal of machining technology, especially in state-owned enterprises of the steel industry.

"I suppose that is also not enough. I received a report which stated that development of the steel industry and iron faced constraints due to the lack of raw materials," he said.

There are three main things to do in an effort to improve the availability of raw materials for the steel and iron industry.

The first thing is to improve the ecosystem of supplying steel and iron raw materials. The second is realizing that the price of gas for the industry is US$6 per million British thermal unit (mmbtu). The third is calculating the impact of steel imports on quality and competitive prices with steel as against the domestic industry.

Source: Antara News

Related posts