Indonesian government invites foreign investment in steel mills to cope with import shock

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The Deputy Minister of Industry recently said after a working session with the Industrial Commission in Parliament that in order to cope with the impact of domestically produced steel by the influx of imported products, the government has thrown an olive branch to foreign investors, inviting them to invest in Indonesia to build factories.He said there have been a number of investors from Europe, China and Vietnam who have shown interest in building steel plants in Indonesia, and that some of these countries also intend to relocate their plants to Indonesia.

He hopes that these investors will set up factories in Indonesia and thus gainAccess to the domestic market, just like other mills already operating in the Indonesian domestic market. The current domestic demand for steel in Indonesia has55% dependent on imports, much of which comes from China, and the domestic steel industry'sCapacity utilization is only about 52%The

He noted thatInvestment is the key to solving the steel industry's problemsIf foreign investors build factories in Indonesia, it will help to better meet the domestic demand of about11 million tons of steel demand, reducing the pressure on imports. He also revealed that there have been many foreign companies that have expressed their willingness to invest in Indonesia to the government, in addition to the steel industry, which had previously beenTextile and automotiveInvestments are being made, and there may be more investments in the steel industry in the future.

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