Local Metal Industry in Need of a 'Weapon' Againts Imported Goods

Husen Miftahudin    •    Rabu, 24 Jun 2015 15:20 WIB
metal industry
Local Metal Industry in Need of a 'Weapon' Againts Imported Goods
ANTARA FOTO / Oky Lukmansyah

Metrotvnews.com, Jakarta: Minister of Industry Saleh Husin said metal industry is one of the basic industries supporting the production of capital goods to support other industries. With metal as one of the main raw materials, the industry is admitted to have a role in national industry development.

"Reaching up to 85 percent, the main components of an equipment or engine used in industrial activities are continuously supplied by metal industry. Then this industry needs protection from import 'attacks'," Saleh said in his written statement in Jakarta, Wednesday (6/24/2015).

Moreover he mentioned that the current position of local metal industry is strengthened by the metal base material industry growth at 5.89 percent during 2014. Meanwhile, to guarantee the availability of raw material supplies, his party continues to support the local resources based metal industry development program.

The potential of abundant materials within the country, which have not been utilized optimally, is also a great chance to enhance the product's competitive value. "Several national industries have utilized the chance by expansions and investments," Saleh stated.

Currently, the government continued to pressure the use of import products to boost local industry growth, especially metal based industry. The strategy is by applying the Enhancement of Local Products Usage (P3DN) program.

"Through P3DN program, the government provides support to become a trigger to enhance the usage of metal products within the country, especially on the project financed by the State Budget," he said.

"One of the form is to require government institutions to maximize the use of local products in their items/service procurements funded by the State Budget or the Regional Budget," Saleh concluded. (Eps)