The Indonesian Iron and Steel Industry Association perceives an imbalance in the country's iron and steel industry. Foreign investments are needed to address this gap.

Purwono Widodo, Chairman of the Indonesian Iron and Steel Industry Association, emphasized that the current challenge in the steel industry lies in its upstream capacity.

The upstream sector involves the processing of steel ore into ingots and requires substantial investments. Hence, foreign investments are crucial for this sector.

"To produce 1 million tons of steel in the upstream sector, it requires US$ 1 billion. This is what we plan together with the government for the future. How to fulfill this investment," said Purwono on October 23, 2023.

Purwono noted that investments in the steel industry over the past few years have reached US$ 15 billion, creating job opportunities for 300,000 new workers.

Agus Gumiwang Kartasasmita, the Minister of Industry, highlighted the steel industry's potential to significantly contribute to economic development.

The steel industry offers high added value and has a multiplier effect on the domestic market, acting as a core for all manufacturing sectors.

Therefore, the steel industry has the potential to enhance the national economic competitiveness, emphasizing the importance of accurate policies within the industry.

"The Ministry of Industry is continually committed to supporting investment and innovation to build the steel industry's structure or ecosystem," said Agus.

He stressed the importance of accurate mapping related to investment to balance the national steel production.

This aligns with the government's import substitution program. According to him, this is essential because the growth in domestic steel demand can outpace current production conditions.

Agus noted that several industries dependent on the steel industry include infrastructure, transportation, heavy machinery, defense, and electronics.

The Ministry of Investment has recorded investments in basic metal industries, non-machinery metal products, and their equipment amounting to IDR 140.6 trillion. Specifically, US$ 8.67 billion comes from foreign investments, while IDR 17.52 trillion comes from domestic sources.