New steel mill saves Rp29-trillion foreign exchange: President Jokowi

New steel mill saves Rp29-trillion foreign exchange: President Jokowi

President Joko Widodo. ANTARA FOTO/Biro Pers Media Setpres/Agus Suparto/Handout/wsj (Biro Pers Setpres/Agus Suparto)

This new mill is using the latest technology in the steel industry.
Jakarta (ANTARA) - President Joko Widodo (Jokowi)  expressed hope that the Hot Strip Steel Mill 2 of the state-owned factory PT Karakatau Steel Tbk would help Indonesia meet its domestic steel demand so that it could save a national foreign exchange of up to Rp29 trillion annually.

“By operating the mill, we will be able to meet the domestic steel demand. Thus, we do not need to import the product. Hence, it will suppress the amount of imported steel, which is currently ranked second in our list of imported commodities. We are optimistic that later, it would help us save our foreign exchange worth Rp29 trillion per year, which is a very large figure," he stated.

The president delivered the statement while inaugurating the mill at Cilegon City, Banten Province, on Tuesday.

Furthermore, Jokowi noted that the mill will produce 1.5 million tons of hot rolled coil steel -- or black rolled steel -- per year. Later, the production capacity will continue to be increased to four million tons per year.

Related news: President Jokowi inaugurates Krakatau Steel's Hot Strip Mill 2 factory

Moreover, the president remarked that the hot rolled coil steel produced by PT Karakatau Steel Tbk was a premium-quality product.

“This new mill is using the latest technology in the steel industry -- which is only used in two mills in the world: the first one is in the United States, while the second one is here. I have taken a look inside," he pointed out.

Hence, President Jokowi has laid emphasis that the products manufactured by the mill will not be inferior in comparison with the imported ones.

"I believe that the products can compete in regional and global markets," he remarked.

Currently, an increase in steel production is direly required, as Indonesia’s steel consumption has increased by 40 percent in the last five years.

Hence, production of the domestic steel industry should be increased to prevent soaring demand for imported products.

"Since our steel consumption is very large, we should not allow foreign products to dominate the market," the president noted.

Related news: Jokowi urges ministers to support steel and iron industries