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Indonesia shows strong steel sector
Date Published：7/2/2018 05:07:33 PM
“This bodes well for Indonesia and the region as the industry prepares for growth and development. Although steel from China is still expected to dominate for many years, strong global demand is driving efforts in countries like Indonesia and Vietnam to build more modern plants to better compete with China’s enormous mills,” said Ms Beattrice J. Ho, Project Director of indometal coorganised by Messe Düsseldorf Asia.
Efforts are already underway to improve local processing and smelting industries to reduce the nation’s dependence on imports.
With domestic manufacturers only able to produce a fraction of Indonesia’s steel needs, the country imports nearly half of its steel demands. The Indonesian government aims to see domestic steel production capacity rise to 12 million tons by 2019, followed by 17 million tons by 2024, and to 25 million tons by 2035. However, this target - set in the National Industry Development Masterplan by Indonesia’s Ministry of Industry - will require private investor involvement.
“Against this backdrop, Indonesia is a model location for a specialised trade fair such as indometal which presents a comprehensive spectrum of products and solutions in the metal and steel value chain which will be critical for domestic producers looking to upgrade their technology and to remain competitive in the industry, as well as provide a one-stop platform for international companies looking to invest and enlarge their footprint in Indonesia and the region,” added Ms Ho.
Expanding on the optimistic stance of the Indonesian market, Mr Sofianto Widjaja, General Manager, WAKENI, said Indonesia’s focus is on improving the quality of and infrastructure development, from new roads and irrigation channels to large-scale power transmission projects to completion of the high-speed rail line. “Indonesia’s economic transformation is picking up steam and it is at the very forefront of the boom in infrastructure redevelopment taking place across Southeast Asia. Companies should prepare themselves for a whole new world of opportunities.”
According to industry analysts, Indonesia is expected to be the 6th largest economy worldwide by 2020, meaning that it will have grown bigger than both Brazil and Russia. This is partly due to a growing middle class, expected to reach 250 million consumers by 2030 – and partly due to its richness in natural resources, as well as its young and increasingly well-educated population. While for the Southeast Asian region, the shortage of adequate infrastructure will see the region needing some US$26 trillion of investment by 2030 according to the Asian Development Bank.