Indonesia's iron and Steel Industry Association (IISIA) executive manager Sheeta Yue. Terry history general Troy Hidajat Triseputro, with a large number of infrastructure projects started, confidence will be to this index. "If all projects are limited to the use of national products, I think, next year, China's iron and steel production capacity utilization will increase to 80%, or even higher, this year, the iron and steel industry has not been significantly changed."
Sheeta Yue said, Indonesia's iron and steel industry development has not yet reached the highest limit, although in the middle of this year, infrastructure projects have begun to implement, but the domestic steel prices still and China don't steel import competition.
Sheeta Yue said that government shall be issued by the tendency of domestic industrial policy, in order to promote the development of iron and steel industry in Indonesia, in addition, the government also by promoting the implementation of domestic products use increased rate of regulations, match words with deeds, in order to promote the domestic production capacity of iron and steel industry. "If the government can implement their country product usage, next year the iron and steel industry production capacity can reach the limit."
Sheeta Yue prediction, steel demand next year will this year than improve a times, reached 28 million tons, at the same time, this year is expected to actual demand for steel or reached 14 million tons.
The government also hopes to curb imports of iron and steel industry, the situation to promote the use of imported iron and steel industry in the lower reaches of Indonesia, because the price is even lower, and even, if the amount of imports reached 1000 tons, will also be absorbed by the market. "Iron and steel prices can not be lower than production costs, for this purpose, the need to coordinate the downstream industry, the government should be limited to the use of national products."
Mr. Yue added, must strictly control the import of iron and steel. "It is necessary to strictly control the import of steel, because the import products have been able to produce in China, but the product price can not compete with imported products, it needs the protection of the government."
In the upstream industry to implement the steel import tax regulations, also must have the support of the lower reaches of the industry, after the government has been formulated, adjusted for the most favored nation (MFN) import tax, increased from 0% to 15% to 5%.