After a working meeting with the House of Representatives' Industrial Commission, the Vice Minister of Industry stated that to address the impact of imported products flooding the domestic steel market, the government is reaching out to foreign investors, inviting them to build steel mills in Indonesia. He noted that many investors from Europe, China, and Vietnam have expressed interest in constructing steel plants in Indonesia, and some countries are even planning to relocate their factories to Indonesia.
He hopes these investors will establish factories in Indonesia, thereby gaining access to the domestic market, just like other factories already operating in the Indonesian domestic market. Currently, Indonesia's domestic steel demand is 55% dependent on imports, most of which come from China, while the domestic steel industry's capacity utilization rate is only about 52%. He pointed out that investment is key to solving the steel industry's problems. If foreign companies build plants in Indonesia, it will help better meet the domestic steel demand of approximately 11 million tons and reduce import pressure. He also revealed that many foreign companies have expressed interest in investing in Indonesia. Apart from the steel industry, many companies have previously invested in Indonesia's textile and automotive sectors, and investments in the steel industry may increase in the future.