Foreword of Ministry of Industry
It is my great pleasure to give foreword for such a prestigious and resourceful directory and by praising to Almighty God I proudly present the IISIA's Directory 2012-2013. This is the second time for IISIA to publish the Directory. Like the IISIA's First Edition of Directory 2009, the IISIA's Directory 2012-2013 displays useful information and with update data, contents of this Directory will be more accurate and helpful for IISIA members and steel industry stakeholders in general. The publication of directory like IISIA's Directory 2012-2013 is important to develop our iron and steel industry, particularly with many challenges ahead.
Looking at Indonesia's economy growth in 2011, which was 6.54%, we are confident that our economy situation is becoming better. The growth of manufacturing industry sector was 6.58% and for iron and steel industry, was incredibly 15.03% which is the highest industry sector growth. If we could maintain this growth for the next several years, we are optimistic to achieve one of our target which is to increase our steel consumption for capita from 32 kg/year in 2011 become 43 kg/year in 2014. This increased is important to reach developing country's level of consumption which is more than 100 kg/capita/year.
Apart from the low steel consumption per capita, more serious problems are standing in front of Indonesia steel industry. One of the crucial problems is high volume of import. While our demand for has grown to around 10 million ton. Our capacity industry is only about 7 million ton. The rest of our demand, which is around 30%, is supplied by import. This high volume of import is partly due to the lack of industry processing mineral material. For that reason, the Indonesian government is actively encouraging industry to process mineral matter by promulgating Law no. 4 of 2009 on Mineral and Coal Mining. It is expected that the law will reduce our dependency on imported raw material and in the same time increase our steel industry competitiveness. Some industries are eagerly starting to take part of this opportunity by processing upstream products, such as Krakatau Posco, Jogja Magasa Iron, Indoferno, Mandan Steel, Meratus Jaya Iron and Steel, Delta Prima Steel and Semeru Surya Steel.
We extend our thanks and appreciation to our valued association members for the compilation of this second edition directory which we hope that steel industry stakeholders find informative and assistance.
Mohamad S. Hidayat