JAKARTA (TheInsiderStories) - Morowali Industrial Park in Southeast Sulawesi is expected to produce stainless steel of three million tons per annum, starting from 2018, up from 2 million tons per annum in 2017, once the current projects begin commercial operations, Industry Minister Airlangga Hartarto said.
Minister Hartarto made the statement when welcoming the visit of Chairman of Tsingshan Holding Group from China, Xiang Gangda as well as China’s Ambassador to Indonesia Xie Feng as well as Director General for Security and development of International Industry Access (KPAII) Harjanto, executives of Bintang Delapan Group, PT Sulawesi Mining Investment and PT Indonesia Morowali Industrial Park (IMIP).
“Apart from reporting a plan to expand stainless steel production, the also plans to produce carbon steel. Therefore, they are requesting fiscal incentives from the government such as easy access for export destination (KITE) and masterlist for industrial equipment,” said Airlangga.
PT IMIP also submitted a request to the government to declare the Morowali industrial zone as national vital object in order to provide security assurance so that assure future development of the area, including protection to employees.
Currently, some of industrial workers coming from abroad, including from China, have been deported for failure to have necessary documents. Harjanjo said security assurance is needed as investors will develop large scale projects such as carbon steel at volume of 4-5 millino tons per anum, with investments of US$4-5 billion.
The other companies that will start developing projects in the area are PT Sulawesi Mining Investment to produce stainless steel slab at one million tons per annum with investment of US$62 million. PT SMIP will also develop 2×350 WM of power plants in Morowali with investment of US$500 million. (*)