Chinese investors interested in investing in Indonesia's steel industry

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The government is attracting new investments for the steel sector to reduce overdependence on imports, the deputy industry minister said recently.Currently Indonesia55% of steel consumption is dependent on importsThe domestic steel industry, which is mainly from China, isCapacity utilization is only 52%. Businesses in multiple countries (including Europe, China and Vietnam)Interested in building a factory in Indonesia, some companies plan to move their factories to Indonesia.

He called on those countries toDirectly investing and setting up factories in Indonesiato enter the domestic market and compete on a level playing field with existing local firms.Investment is the key to solving the steel industry's problemsIf foreign investment builds a factory in Indonesia, it will help to meet the domestic demand of about11 million tons of steel demand, reducing import pressures.

In addition, he also mentioned that the recent Indonesian manufacturingForeign investment willingness continues to increaseIn addition to steel, the textile and automotive sectors are showing similar trends in investment growth. The government hopes that byAttracting more foreign investmentIt also promotes the development of the domestic steel industry, boosts production capacity and reduces dependence on imports.

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