Indonesia steel consumption growth and challenges

In the declaration of the Master Plan for the Acceleration and Expansion of Indonesian Economic Development or Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia (MP3EI) which lasted until 2025, rugged steel demand is expected to increase to 19.2 million tons, while currently the domestic steel industry capable of supplying 5.4 million tons.

Steel business in Indonesia is predicted to more prospective. National steel consumption growth reached 8% per year.

Steel Needs

Based on data from the Ministry of Industry by the end of 2013,

  • national steel consumption reached 9.2 million tons,
  • the number of the metal industry in the country as many as 325 units in 2012,
  • the total rugged steel production reached 5.4 million tons.
  • rugged steel imports reached 3.8 million tons,
  • the value of the overall steel imports, ranging from product upstream, intermediate and downstream steel, reaching U.S. $ 13.4 billion.
  • Imports increased from the previous year amounted to 10.7 billion U.S. dollars, equivalent to 22 million tons of steel.

Challenges

Ministry of Industry stated supply of domestic steel production has not met all the needs of the domestic market , so it is still imported .

According to the Chairman of Indonesian Iron and Steel Industry Association ( IISIA ) , Fazwar Bujang , that the rate of growth of steel production in Indonesia is influenced :

  • fluctuations in the dollar (US$) against the rupiah (IDR),
  • cost of production ,
  • the use of domestic steel production ,
  • benefit from the Government as to facilitate the national steel industry , to provide incentives to minimize production costs , encourage state-owned enterprises – BUMN to use the domestic steel , and anti- dumping .

IISIA assess the main conditions facing the open market is competitiveness. It can be obtained by maximizing capacity utilization of the iron and steel industry.

According to the Director General of the Industrial Manufacturing Industry Ministry , Benny Wachjudi , that other issues related to the steel industry in the country :

  • products that were made to different specifications or does not yet even be produced in the country ,
  • downstream steel industry is growing faster than the upstream industry and cause supply raw material for the domestic steel industry and downstream intermedite not been fulfilled .

New Investment

The Indonesian government wants the whole potential of the steel industry from upstream, and downstream intermediete can contribute the maximum.

There is now a realization of seven new investment in the steel industry. Among them:

  • PT. Krakatau Posco,
  • PT. Batulicin Steel,
  • PT. Jogya Magasa iron and Steel,
  • PT. Krakatau Steel,
  • PT. Indoferro,
  • PT. Meratus Jaya Iron and Steel,
  • PT. Delta Prima Steel.

Expected from the growth of the steel industry produces basic steel products, so that the production facility for customized derivative products immediately in order to avoid “bottle neck” in intermediate products.

PT Krakatau Posco steel plant

PT Krakatau Steel (Persero) Tbk (KS) is the biggest steel company in Indonesia. This state-owned enterprise is located in Cilegon, Banten , and was established on August 31, 1970. The resulting product are hot rolled steel, cold rolled steel, and steel wire rod.

President of republic Indonesia, Susilo Bambang Yudhoyono inaugurated the integrated steel mill PT Krakatau Posco Phase-1 is a joint venture between PT Krakatau Steel ( Persero ) Tbk ( KS ) with Pohang Iron & Steel Company ( Posco ) , in Cilegon , Banten , on Monday ( 23/12 / 2013) .

PT Krakatau Posco steel plant is a joint venture between Indonesia and Korea .

70 percent share is owned by Posco and the rest is owned by Krakatau Steel . The inauguration of this plant is a tangible manifestation of the increase of national steel industry .

PT Krakatau Posco will produce raw materials such as steel plate and slab to meet the needs of various industrial sectors among shipbuilding industry , construction , and domestic manufacturing , as well as supplying the needs of PT Krakatau Steel who is currently implementing a project to increase the capacity of the plant Hot Strip Mill ( HSM ) .

PT Krakatau Posco Phase-1 has a production capacity of 3 million tons per year , and after completion of construction of the second phase of the plant increased its production capacity to 6 million tons per year. Posco total capacity will be two times the present total production capacity of Krakatau Steel .

PT Steel Pipe Industry of Indonesia Tbk (IISP) entered the Indonesia Stock Exchange

PT Steel Pipe Industry of Indonesia Tbk (IISP) or abbreviated Spindo is one of the steel pipe manufacturer based in Surabaya, East Java, began to enter the Indonesia Stock Exchange on February 22, 2013. From the Initial Public Offering (IPO), Spindo raise funds worth Rp 855.5 billion. Spindo obtain Rp 813.42 billion in net proceeds after deducting funds IPO public offering cost Rp 42.08 billion.

Spindo has been used Rp 735.06 billion from the fund for business development :

  • Capital expenditure of Rp 124.8 billion,
  • Repayment of debt of Rp 209 billion, and
  • Working capital to Rp 401.2 billion.

Fund initial public offering Spindo reported remaining Rp 78.3 billion.

Pertumbuhan konsumsi baja Indonesia dan tantangan

Dalam pencanangan Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia (MP3EI) yang berlangsung hingga 2025, kebutuhan baja kasar diperkirakan meningkat menjadi 19,2 juta ton, sementara industri baja dalam negeri baru mampu mensuplai  5,4 juta ton.

Bisnis baja di Indonesia diprediksi semakin prospektif. Pertumbuhan konsumsi baja nasional mencapai 8% per tahun.

Kebutuhan baja

Berdasarkan data Kementerian Perindustrian pada akhir tahun 2013,

  • Konsumsi baja nasional mencapai 9,2 juta ton,
  • Jumlah industri logam di dalam negeri sebanyak 325 unit pada 2012,
  • Total produksi baja kasar mencapai 5,4 juta ton.
  • Impor baja kasar mencapai 3,8 juta ton,
  • Nilai impor baja secara keseluruhan , mulai dari produk hulu, intermediate, dan hilir baja, mencapai US$ 13,4 miliar.
  • Impor meningkat dari tahun sebelumnya sebesar 10,7 miliar dolar AS atau setara dengan 22 juta ton besi baja.

Tantangan

Kementerian Perindustrian menyatakan suplai baja produksi dalam negeri belum memenuhi semua kebutuhan pasar domestik, sehingga masih diimpor.

Menurut Chairman Indonesian Iron and Steel Industry Association (IISIA), Fazwar Bujang, bahwa tingkat pertumbuhan produksi baja di Indonesia dipengaruhi :

  • Fluktuasi dolar terhadap rupiah,
  • Biaya produksi,
  • Pemakaian baja hasil produksi dalam negeri,
  • Tunjangan dari Pemerintah seperti memfasilitasi industri baja nasional, memberi insentif untuk memperkecil biaya produksi, mendorong BUMN memakai baja dalam negeri, dan anti dumping.

IISIA menilai syarat utama menghadapi pasar terbuka adalah memiliki daya saing. Hal itu, bisa diperoleh dengan memaksimalkan utilisasi kapasitas dari industri besi dan baja.

Menurut Direktur Jenderal Basis Industri Manufaktur Kemenperin, Benny Wachjudi, bahwa permasalahan lain terkait industri baja di dalam negeri :

  • Produk yang dibuat dengan spesifikasi yang berbeda atau bahkan beum bisa diproduksi di dalam negeri,
  • Industri hilir baja tumbuh lebih cepat dibanding industri hulu dan menyebabkan suplai bahan baku domestik untuk industri baja intermedite dan hilir belum tercukupi.

Investasi Baru

Pemerintah Indonesia menginginkan seluruh potensi industri baja mulai dari hulu, intermediete dan hilir dapat berperan maksimal.

Saat ini sudah ada realisasi tujuh investasi baru di industri besi baja. Diantaranya:

  • PT. Krakatau Posco,
  • PT. Batulicin Steel,
  • PT. Jogya Magasa iron and Steel,
  • PT. Krakatau Steel,
  • PT. Indoferro,
  • PT. Meratus jaya Iron and Steel,
  • PT. Delta Prima Steel.

Diharapkan dari tumbuhnya industri baja tersebut menghasilkan produk baja dasar, sehingga fasilitas produksi untuk produk turunannya segera disesuaikan  agar tidak terjadi “bottle neck” di produk intermediate.

Pabrik baja PT Krakatau Posco

PT Krakatau Steel (Persero) Tbk (KS) adalah perusahaan baja terbesar di Indonesia. BUMN yang berlokasi di Cilegon, Banten ini berdiri pada tanggal 31 Agustus 1970. Produk yang dihasilkan adalah baja lembaran panas, baja lembaran dingin, dan baja batang kawat.

Presiden Indonesia Susilo Bambang Yudhoyono meresmikan pabrik baja terpadu PT Krakatau Posco tahap pertama yang merupakan joint venture antara PT Krakatau Steel (Persero) Tbk (KS) dengan Pohang Iron & Steel Company (Posco), di Cilegon, Banten, Senin (23/12/2013).

PT Krakatau Posco merupakan pabrik baja patungan Indonesia-Korea .

Sebanyak 70 persen saham perusahaan ini dimiliki Posco dan sisanya Krakatau Steel. Peresmian pabrik ini merupakan wujud nyata dalam meningkatkan industri baja nasional.

PT Krakatau Posco ini akan memproduksi bahan baku baja berupa pelat dan slab untuk memenuhi kebutuhan berbagai sektor industri di antaranya industri galangan kapal, konstruksi, dan manufaktur domestik, sekaligus mensuplai kebutuhan PT Krakatau Steel yang saat ini sedang melaksanakan proyek peningkatan kapasitas pabrik Hot Strip Mill (HSM).

PT Krakatau Posco tahap pertama ini memiliki kapasitas produksi sebesar 3 juta ton per tahun, dan setelah selesai pembangunan pabrik tahap kedua  maka kapasitas produksi ditingkatkan menjadi 6 juta ton per tahun. Jumlah kapasitas tersebut mencapai dua kali dari total kapasitas produksi Krakatau Steel saat ini.

PT Steel Pipe Industry of Indonesia Tbk (IISP) masuk Bursa Efek Indonesia

PT Steel Pipe Industry of Indonesia Tbk (IISP) atau disingkat Spindo adalah salah satu perusahaan produsen pipa baja yang berbasis di Surabaya, Jawa Timur, mulai masuk Bursa Efek Indonesia pada 22 Februari 2013. Dari Initial Public Offering (IPO), Spindo meraih dana senilai Rp 855,5 miliar. Spindo memperoleh hasil bersih Rp 813,42 miliar setelah dana penjualan saham perdana dikurangi biaya penawaran umum sebesar Rp 42,08 miliar.

Spindo telah menggunakan Rp 735,06 miliar dari dana tersebut untuk langkah pengembangan usaha, yakni:

  • Belanja modal sebesar Rp 124,8 miliar,
  • Pelunasan hutang Rp 209 miliar, dan
  • Modal kerja Rp 401,2 miliar.

Dana penawaran umum saham perdana Spindo dilaporkan tersisa sebesar Rp 78,3 miliar.

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One response to “Indonesia steel consumption growth and challenges

  1. Pingback: Production Targets of Indonesian Commodity (Metals) 2014 | Mande Blog·

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