The Indonesia’s Industry Minister Mr. Agus Gumiwang Kartasasmita said that Indonesia government will ease rules on the import of scrap for steel industry, hoping this will lead to a reduction in imports of steel billets.
He said “We’ve decided for scrap metal, we will relax their imports because we can see the need for scrap metal in the domestic market. This will support the production of billets. The new government measure would exclude scrap metal from that list, potentially reducing the number of permits required for shipments.
Local steel industry is now utilising only about 40% of its capacity, partly because companies don’t have enough materials for production. If the country’s mills can increase their utilisation rates, they can supply 70% of domestic steel product demand.”
The Indonesian Iron & Steel Association has long complained that steel imports, particularly from China, have hurt their business, despite anti-dumping duties applied on many types of steel products from China and other countries.
Scrap metal is currently included in the government’s list of dangerous and poisonous waste. Importers of such waste must have a licence and must obtain numerous permits from the ministries of industry, environment and trade.