The ministry's spokesperson Febri Hendri Antoni Arif said here on Tuesday that the partnership scheme aims to empower domestic industries, especially in sectors overwhelmed by imported goods such as textiles, steel, electronics, cosmetics, ceramics, and footwear.
Arif noted that among the six sectors, only the textile industry has regulations governing imports.
“This situation makes domestic industries hesitant to produce at full capacity. Instead of producing 100 units, they may only produce 60, fearing the market cannot absorb the products,” he said here on Tuesday.
Therefore, priority should be given to using local products rather than imported goods.
“Buying local products protects our fellow citizens working in these industries,” he emphasized.
Previously, Deputy Minister of Industry Faisol Riza said the ministry is strengthening market protection and attracting new investment in the steel industry to meet domestic demand, which currently relies on 55 percent imports.
According to Statistics Indonesia (BPS), as of 2021, there were 562 companies in the basic metal sector (KBLI 24) and 1,592 companies in the fabricated metal sector (KBLI 25).
He highlighted a significant gap between domestic steel consumption and national production, with imports, mainly from China, filling 55 percent of the demand.
In 2024, Indonesia’s steel production reached 18 million tons, ranking 14th globally, a 110 percent increase from 2019. Global crude steel production in 2024 totaled 1.884 billion tons, led by China with 1.005 billion tons (53.3 percent) and India with 149.4 million tons (7.9 percent).
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Translator: Fauzan, Kenzu
Editor: Azis Kurmala
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