I have been informed that in Banten, a lot of domestic companies are violating regulations in (related to the production of) concrete rebar products.
Tangerang, Banten (ANTARA) - Trade Minister Zulkifli Hasan has said that the production of concrete reinforcing bar (rebar) products that do not meet the Indonesian National Standard (SNI) could endanger the national steel industry.

"So (producing non-SNI rebar) could affect (state-owned steel company) PT Krakatau Steel, and it could cause bankruptcy," he observed after visiting a steel factory owned by PT Long Teng Iron and Steel in Pasar Kemis here on Thursday.

The development of the construction and manufacturing industry is essential for national infrastructure development, and the steel industry has a vital role in enhancing construction development, the minister said.

However, the consumption and self-reliance of the national steel industry could be harmed if one element of the steel industry is not in keeping with the national standard, he cautioned.

"How pity when other domestic industries abide by regulations, yet there is one industry that is falling behind in adhering to SNI regulations," the minister said.

The ministry will take action against at least 40 steel companies whose products have failed to meet the SNI standard, Hasan informed.

"I have been informed that in Banten, a lot of domestic companies are violating regulations in (related to the production of) concrete rebar products," he said.

Producers have been prohibited from selling rebar products that do not comply with SNI standards, he said, adding that action would be taken against non-compliant producers to prevent losses related to the aspects of consumer safety, health, and environment.

"The action would be taken according to Article 40 of the Trade Minister’s Regulation No. 69 of 2018 on monitoring of circulating products or services, which would see the products destroyed," Hasan said.

Earlier, the Trade Ministry destroyed 419,537 concrete reinforcing bars valued at Rp32.2 billion as they did not meet the SNI regulation.

Producers of non-standard rebar products are considered to violate Article 8 Par. (1) Letter (a) of Law No. 8 of 1999 on Consumer Protection, which carries a maximum punishment of five years in prison or a fine of Rp2 billion (US$128 thousand).

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Translator: Azmi Syamsul M, Nabil Ihsan
Editor: Azis Kurmala
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