The Jakarta Globe reported that Japan's JFE Steel plans to invest around IDR 3.5 trillion to build a downstream steel mill in Indonesia.
Mr Edward Pinem secretary general of the Indonesian Iron and Steel Industry Association said that JFE Steel is currently working to secure permits from the Investment Coordinating Board.
He said such an investment plan would help create value added for ore commodities and support the government's plan to ban ore exports in 2014.
The government, in May 2012, imposed a 20% duty on 65 types of minerals in ore form to encourage more value adding processing at home before a complete ban on ore exports takes effect in 2014.
JFE Steel, which based in Chiyoda ku in Tokyo, was established in April 1st 2003. It produces steel related products, including plates, sheets, pipes and tubes, shapes, stainless and electrical steels.
Mr Edward said that JFE Steel's investment would help Indonesia’s automotive and home appliance sector by supplying steel for their products. He added that "It would also help create jobs."
Mr Husen Maulana director of the Indonesia Investment Promotion Center revealed the JFE Steel investment plan, but he did not disclose the size of the investment. He said JFE Steel has secured 15 hectares of land in an industrial park in Bekasi, West Java, to build the steel mill.
Mr Husen said the arrival of JFE Steel will help Indonesia's downstream steel sector, which supplies steel to manufacturing industries that use steel related products.
He said JFE Steel plans to provide employment opportunities for 300 workers. Indonesia's strong consumer demand is expected to spur automotive sales and consumer related goods. The country has drawn the interest not only of large manufactures, but also producers of some basic industry commodities, such as steel.
South Korean steel producer POSCO plans to ramp up spending commitments in Indonesia, Southeast Asia's biggest economy, to USD 11 billion, up from the current USD 6 billion, under a five-year development plan.
Source - The Jakarta Globe
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