Construction projects at Nusantara Capital City (IKN) can help Indonesia promote its steel potential, according to Coordinating Minister for Economic Affairs Airlangga Hartarto.
“I believe that IKN will serve as a good marketing ground for our steel programs,” he remarked in Jakarta on Wednesday.
Hartarto spoke highly of Indonesia’s steel potential, saying it is second to none for its welding engineering capacity.
The minister then emphasized the importance of Indonesia ensuring that its steel potential gains international popularity.
He also expressed optimism about the labor cost of construction projects in Indonesia becoming more competitive.
“We should be confident in this regard because the labor cost in Vietnam and China has been on the rise. On the other hand, Indonesia is presented with an opportunity to make the most of the demographic bonus,” he stated.
Hartarto then highlighted the need for Indonesia's steel industry to attach added value to its products.
"Added value is essential. We should not value our products merely based on their weight. Instead, we value them based on the total package used in a project," he emphasized.
The minister also expressed optimism that Indonesia's steel products would dominate the domestic market.
Earlier, Chairman of the Indonesian Iron and Steel Industry Association (IISIA) Purwono Widodo stated that 9.5 million tons of steel are required to develop Nusantara in East Kalimantan Province.
Widodo noted that some 500 thousand-700 thousand tons of steel are needed in the first phase of development while adding that the quantity is expected to reach around one million tons in each subsequent phase.
Widodo underlined that the IISIA had collaborated with the Public Works and Public Housing Ministry to fulfill IKN's steel requirement.
Editor : Vicki Febrianto
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