Indonesian Steel Industry Faces Crisis Amid Surge in Imports

Local Manufacturers Struggle to Compete

The Indonesian steel industry is facing significant challenges due to the influx of cheap steel imports from China and Vietnam. The Indonesian Society of Steel Construction (ISSC) has raised concerns about the impact of these imports on local manufacturers and workers. According to ISSC Chairman Budi Harta Winata, imports of ready-to-install steel construction materials have surged to 1 million tons this year, severely affecting domestic production.

Economic and Social Impact

The surge in imports has led to a significant decline in demand for locally produced steel, resulting in substantial job losses. Budi Harta Winata shared that his company, which once supported 1,000 employees, now only employs 70 people due to the competition from imported products. Many domestic construction projects, including warehouses, factories, and shopping centers, are now using imported steel products, further exacerbating the situation.

Call for Government Intervention

The ISSC is urging the government to take action to protect the local steel industry by restricting imports. Winata emphasized that without such measures, the industry will continue to suffer, leading to further job losses and economic instability. The industry is seeking a comprehensive policy to address the issue and restore the competitiveness of local manufacturers.