JAKARTA - The Ministry of Industry continues to strengthen the supply chain for the refractory industry so that it can be competitive, both domestically and globally. This is because the refractory industry is a capital-intensive sector that needs to be stimulated by optimizing local raw materials in line with the implementation of import substitution policies.
"The manufacturing sector development policy is focused on strengthening supply chains to ensure the availability of sustainable and affordable raw materials and energy as mandated by Law Number 3 of 2014 concerning Industry," said Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) Muhammad Khayam. in Jakarta, Tuesday (15/6).
The Director General of IKFT explained that the refractory industry is considered one of the strategic sectors because its production is to support the needs of various other manufacturers. Khayam is optimistic that if the refractory industry grows and has a brilliant performance, it will support the performance of the non-oil and gas processing industry sector, especially the non-metallic mineral industry group.
Currently, there are 30 companies that are members of the Indonesian Refractory and Insulation Industry Association (ASRINDO). "The government and stakeholders will jointly build a conducive business climate so that the refractory industry can be stronger and more competitive with imported products," he said.
Meanwhile, Chairman of ASRINDO Basuki Sudarsono said, the finished refractory products are made from alumina as basic raw material with 95% imported composition and only 5% using local products. Meanwhile, more than 50% of global branded refractory products are imported, or a value of approximately IDR 2.2 trillion. (LM)