BUSINESS

Association Lauds Protection of Non-alloy Steel

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A worker uses a metal melting furnace at PT Krakatau Posco's plant at the Krakatau Steel industrial area in Cilegon, Banten. (Kompas/Iwan Setiyawan)

Based on Finance Ministry Regulation PMK No. 130/PMK.010/2017, the import duty for non-alloy steel is set at Rp2.89 million (US$ 214.7) per ton for the Oct. 3, 2017 to Oct. 2, 2018 period and Rp2.19 million per ton for the Oct. 3, 2018 to Oct. 2, 2019 period.

A worker uses a metal melting furnace at PT Krakatau Posco’s plant at the Krakatau Steel industrial area in Cilegon, Banten. (Kompas/Iwan Setiyawan)

The Indonesia Zinc Aluminum Steel Industry Association (IZASI) has expressed appreciation for the government’s move to protect certain iron and steel products, in a policy set to be implemented on Oct. 3, which will be effective for the next two years.

“Indonesia sees steel as a strategic industry, as indicated by the fast growth of the industry over the past 10 years,” said IZASI executive director Rhea Sianipar in a statement released on Wednesday.

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The specific products protected are flat-rolled iron and non-alloy steel, with a width of 600mm or more, clad plated or coated with aluminum-zinc alloy, containing less than 0.6 percent carbon in its weight, with a thickness of up to 0.7mm, or those with HS code 7210.61.11.

In 2016, the demand for coated steel in the domestic market reached 1.3 million tons, some 789,244 tons of which was for construction purposes.

Currently, the installed capacity of the IZASI members reaches 860,000 tons.

“Protection is very important amid the significant leap in imports,” she continued.

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IZASI is comprised of three firms producing zinc aluminum coated steel: PT NS BlueScope Indonesia, publicly listed PT. Saranacentral Bajatama and PT Sunrise Steel.

The three are the only industry players in the segment in the country.

Based on Finance Ministry Regulation PMK No. 130/PMK.010/2017, the import duty for non-alloy steel is set at Rp2.89 million (US$ 214.7) per ton for the Oct. 3, 2017 to Oct. 2, 2018 period and Rp2.19 million per ton for the Oct. 3, 2018 to Oct. 2, 2019 period. (bbn, Stefani Ribka, The Jakarta Post)

 

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