Indonesia Steel Imports Likely to Rise 6% Y-o-Y in CY19 – PT Krakatau Steel

According to data released by PT Krakatau Steel, the steel imports in the country are expected to have hit 6.3 MnT mark during CY19 to book a Y-o-Y rise of 6.3%. During CY18, the steel imports were recorded at 6.3 MnT and the same were 5.7 MnT and 5.9 MnT during CY16 and CY17 respectively. During CY16-19 the country’s steel imports have grown at a CAGR growth of 5.5%.

Indonesian steel producers have called on the government impose ruling that is intended to help curb massive imports of such products to Indonesia, said Silmy Karim, president director and chief executive officer of  PT Krakatau Steel, a state owned steel maker.

“Along with State Enterprise Ministry, we have provided input to relevant ministries so that the domestic steel industry remain healthy. The domestic steel industry remained under pressure from foreign steel imports during CY18 and CY19. We want the government to impose ruling and supervision on steel imports,” Silmy Karim said in press statement distributed in Jakarta last week after it concluded its USD2 billion debt-restructuring plan with its creditors.

Karim said that steel imports could increase Y-o-Y due to lack of regulations whichcould have protected the domestic industry.

Karim has said that steel imports from China has hit Indonesia’s steel industry and Indonesian market. This has caused the government to suffer from a trade deficit.  “if this situation continues, then Indonesia will remain the biggest consumers of steel imports. Thus it will pressure the deficit on the country’s trade balance,” Karim said.

Indonesia steel imports