The basic metal industry recorded extraordinary achievements with growth of 10.86% in the third quarter of 2023. This is good for industry in general as basic metal plays key role in the industry growth.
Along with positive developments in the last three years, this industry has shown brilliant achievements with double-digit growth, Director General of the Metal, Machinery, Transportation Equipment and Electronics Industry (ILMATE), Ministry of Industry Taufiek Bawazier said for the Indonesian Iron & Steel Industry Association (IISIA) Business & Forum (IBF), on Friday, November 10, 2023.
This forum was held in BSD Tangsel (South Tangerang) on 9-11 November, 2023. The IBF 2023 is a forum for exchanging information and business matching for all stakeholders in the national steel industry, which is expected to be able to strengthen efforts to develop national industrial independence.
The Director General of ILMATE at the Ministry of Industry said that in 2020, amidst the COVID-19 pandemic outbreak, the basic metals industry continued to grow by 5.87%.
“However, in 2021, during the recovery period from the impact of COVID-19, growth jumped to 15.79%, and in 2022, this industry will still record growth of 14.80%,” he said.
Taufiek said that significant growth is also reflected in Indonesia’s crude steel production, which reached 15.6 million tons in 2022.
This, he added, marked a big step in advancing the national steel industry. This achievement also strengthens Indonesia’s position at the global level, rising 13 places from 28th to 15th in world steel production.
However, Taufiek emphasizes that in line with the rapid growth in the industry, it is also necessary to evaluate the utilization of the metal and steel industrial sector which is estimated to be in the range of 70-80%.
“Considering recent developments in the steel industry sector, an assessment for utilization needs to be carried out again in order to obtain more accurate information regarding the capabilities of the national steel industry. This will provide a more comprehensive picture regarding the contribution of this sector to the national economy,” he said.
Based on data from the Ministry of Industry, in 2007 Indonesia’s Crude Steel production was 5.2 million tons, and ranked 28th in the world. However, in 2022 it tripled to 15.6 million tonnes and be ranked 15th in the world.
“In 2022, Indonesia’s crude steel production increased by 4.96% compared to 2021,” said Taufiek.