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Metal and steel industry grows positively in 2021

24 January 2022 10:25

JAKARTA - Even though the Covid-19 challenge is still not over, the performance of the national industry is quite encouraging compared to 2020, with an indication that the average Purchasing Manager Index (PMI) for 2021 shows 50 or is in the expansive stage. This is also shown by the performance of the metal and steel industry sector which also experienced positive growth during 2021.

The Central Statistics Agency (BPS) noted that in the third quarter of 2021, the metal industry sector with an HS 72-73 was able to grow above 9.82 percent. This performance was also supported by exports of steel products until November 2021 which reached USD 19.6 billion and experienced a surplus of USD 6.1 billion.

The Director of Metal Industry, Directorate General of Metal, Machinery, Transportation Equipment and Electronics (ILMATE) at the Ministry of Industry, Budi Susanto stated, the positive growth of the steel sector was due to control efforts carried out by the government with the concept of smart supply demand, which was implemented in favor of the national steel industry starting from upstream and downstream sectors.

"This increase in steel demand is supported by the automotive PPnBM policy which also grew to 27% in the third quarter of 2021," he said in Jakarta, some time ago. This arrangement is important so that domestically produced products can be maximized and almost all existing imports are raw materials for various types of industries.

Until the third quarter of 2021, investment in the metal sector showed quite encouraging performance, reaching Rp87.73 trillion and utilization in the sector was above 60%. For example, in the coated steel industry, the performance has improved very well as shown by PT Saranacentral Bajatama.

Executive Director of the Research Oriented Development Analysis (RODA) Institute, Ahmad Rijal Ilyas said, steel imports in 2021 compared to 2019 experienced a fairly good decline, from 6.9 million tons in 2019 to 4.8 million tons in 2021 or decreased 31%. (LM)

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