Tata Steel was interested to invest in Indonesia, Indonesia’s Industry Ministry said in a statement late Tuesday.
Industry Minister Airlangga Hartarto said Tata Steel plans to carry out surveys in several industrial estates in Banten and in East Java.
“They are surveying on locations and regulations. It may need an investment of around S$60 million,” said Hartarto in the statement. Tata Steel expressed its interest to invest in Indonesia during a visit at the Ministry of Industry, the statement said.
I Gusti Putu Suryawirawan, a director general at the Industry Ministry said Tata Steel will conduct a study for a month to review possible investment in wire rod production.
Sunil Bhaskaran, Vice President of Tata Steel said the statement that the company is considering investment options in the Southeast Asia’s biggest economy because Indonesia’s economy is growing with many infrastructure projects.
He visited the ministry as a representative of Siam Industrial Wires, a steel unit ofTata Group in Thailand. Siam Industrial Wires is one of major wire rod producers in Thailand and Southeast Asia, Sunil added.
“We feel that Indonesia is a huge potential market in ASEAN and we want to see how we can have a representation here,” he said in the statement. “We have good technology, good products and we are a global manufacturer,” Sunil said. Tata Steel has production facilities in 26 countries and representative office in more than 50 countries.
Indonesia’s steel industry is expected to grow by an average of 6% per year until 2025, boosted by demand from construction and automotive sectors. The construction and automotive sectors in Southeast Asia’s biggest economy is forecast to grow by 8.5% and 9.5% per annum.
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