JAKARTA (TheInsiderStories) – Indonesia and Japan industry players have renewed commitment to strengthen cooperation on steel production to support domestic industries, with Krakatau Steel and its Japanese partners are leading the way.
The commitment was made during the sixth forum for Indonesia-Japan Steel Dialogue (IJSD) held last week in Tokyo. The dialogue was attended by members of Indonesia Steel Industry Association (IISIA) and Japan’s Steel Association (JISF).
“We continue to encourage steel makers to expand their production and investment to support other industries such as automotive, machinery, electronics as well as construction,” Industry Minister Saleh Husin said.
Director General for Metal, Machinery, Transportation tools and Electronics (ILMATE) at the Industry Ministry, I Gusti Putu Suryawirawan said the forum aims to strengthen chain supply between steel makers and end-user.
Putu said among companies that planned to increase investments are PT Krakatau Nioppon Steel Sumikin (KNSS), a joint venture between Krakatau Steel and a Japanese company as well as PT JFE Steel Galvanizing, which planned to produce CRC and BjLS to support automotive industry.
KNSS planned to invest US$400 million with capacity of 400,000 tons per annum, JFE Steel plan to invest US$325 million with with capacity of 300,000 tons per annum, while Krakatau Osaka Steel plans to add investment around US$200 million to produce steel bar and other products. (*)
According to the Industry Attaché in Tokyo, Japan investment realization in Indonesia in 2015, increased 6 percent from 2014, valued at US$2.87 billion and created 115,400 new jobs. The investments were dominated by manufacturing sector, namely automotive, electronics, chemicals and pharmaceuticals. Japanese investment commitments in 2015 reached US$ 8.1 billion, an increase of 95 percent from the previous year. (*)