ID :
24554
Wed, 10/15/2008 - 15:35
Auther :
Shortlink :
https://www.oananews.org//node/24554
The shortlink copeid
CONSUMPTION OF LOCAL STEEL PRODUCTS NEEDS TO BE BOOSTED
Jakarta, Oct 15 (ANTARA) - Deputy Chairman of the Indonesian Iron and Steel Institute Association (IISIA), Irvan K. Hakim, said that the government needed to boost consumption of local steel products in an effort to save domestic steel industry from imports.
"We hope that the government would issue a presidential decision which requires state companies to use steel products made at home," Irvan Hakim said after a meeting with officials of the Ministry of Industry and the Ministry of Trade, here on Tuesday.
He said that upstream as well down stream industries at present were still producing below their production capacities as a result of the fact that domestic consumption was not yet maximum.
Therefore, he called on the government to issue a trade regulation and to boost local steel consumption, particularly in the current global financial crisis.
"Our down-stream industries like pipe, zinc, bolt, nut, concrete iron and profile steel products are operating at 40 percent capacities only while upstream ones at 50 percent," he added.
He said that even before the global financial crisis about 10 nail factories had been shut down this year alone.
Therefore, Irvan Hakim hoped that the government would issue a presidential decision that requires state-owned companies to purchase domestic steel products.
Thus, the market of domestic industries which so far dominated only 60 percent of the market shares of about US$2-US$2.5 billion in the country would be guaranteed.
"We hope that the government would issue a presidential decision which requires state companies to use steel products made at home," Irvan Hakim said after a meeting with officials of the Ministry of Industry and the Ministry of Trade, here on Tuesday.
He said that upstream as well down stream industries at present were still producing below their production capacities as a result of the fact that domestic consumption was not yet maximum.
Therefore, he called on the government to issue a trade regulation and to boost local steel consumption, particularly in the current global financial crisis.
"Our down-stream industries like pipe, zinc, bolt, nut, concrete iron and profile steel products are operating at 40 percent capacities only while upstream ones at 50 percent," he added.
He said that even before the global financial crisis about 10 nail factories had been shut down this year alone.
Therefore, Irvan Hakim hoped that the government would issue a presidential decision that requires state-owned companies to purchase domestic steel products.
Thus, the market of domestic industries which so far dominated only 60 percent of the market shares of about US$2-US$2.5 billion in the country would be guaranteed.
