Tuesday, July 16, 2024

Tata Metal Lestari expands production line with Rp1.5 trillion investment

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Steel plate coating company PT Tata Metal Lestari is set to invest Rp1.5 trillion (US$91.5 million) to expand its production capabilities, aiming to boost export performance by 2025.

Stephanus Koeswandi, Vice President for Operations at PT Tata Metal Lestari, announced that the company currently allocates 30 percent of its production capacity, amounting to 3,000 tons per month, to exports. Despite this, export sales contribute up to 30 percent of the company’s total revenue.

“With the promising export performance trajectory, we plan to invest Rp1.5 trillion next year. This investment will also create more job opportunities,” Stephanus said on Friday, June 21, 2024.

He cited that the company will support small and medium-sized enterprises (SMEs) to enhance Tata Metal’s production absorption. An example is the steel puppets crafted by SMEs from Yogyakarta.

Minister of Trade Zulkifli Hasan pledged to support Tata Metal’s export growth by finalizing several trade agreements. Two agreements targeted for completion in the second half of this year are the Indonesia-Canada CEPA and the Indonesia-European Union CEP.

Additionally, Zulkifli aims to expand access to non-traditional markets by joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), with a specific target to open markets in Mexico through this partnership.

Zulkifli highlighted that Tata Metal has already benefited from the Indonesia-Chile CEPA, enabling the company to export to Puerto Rico without tariff barriers, thanks to the IC-CEPA agreement.

“Tata Metal can enter the Latin American market through Chile, benefiting from zero tariffs due to IC-CEPA, including for steel products,” Zulkifli said.

On June 21, Tata Metal conducted its first simultaneous export of three products to three countries − Canada, Australia, and Puerto Rico − valued at US$1.6 million (Rp24 billion).

Zulkifli praised Tata Metal for contributing to the national trade surplus, which has remained positive for 48 consecutive months. He particularly appreciated the exports to Australia, as Indonesia currently has a trade deficit with Australia amounting to US$6 billion. Improving export performance to Australia is seen as crucial.

“In addition to adding value, Tata Metal’s exports create additional jobs. Therefore, increasing exports to Australia and Canada is vital,” he said.

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