18 Mei 2011
Readiness of Steel Industry to Face Strategic Industry Revitalization

Jakarta - Located in Wisma Antara, Jakarta has held a national seminar themed "Preparedness of Steel Industry Facing Revitalization Strategic Industries" which is a follow-up of the National Seminar on Defense Industry ANTARA that held on Wednesday, May 18th, 2011.

The seminar which took place on Tuesday, July 12th, 2011, presented President Director of PT Krakatau Steel (Persero) Tbk Fazwar Bujang, Vice Chairman of Commission I House of Representative-RI Major General TNI (Ret.) Tb. Hasanuddin, Military Observer Connie R. Bakrie, and Vice President, Chief Economist BNI Ryan Kiryanto as a speaker. With an acknowledgement from Director of ANTARA Ahmad Mukhlis Yusuf, and also the Keynote Speech by Deputy Minister of Defense Lt. Gen. Sjafrie Sjamsoeddin.

In this Seminar also invited officer from the Ministry of Defense, Ministry of Industry, Ministry of State Enterprises, TNI Headquarters, Forces/Police Headquarters, strategic industries, related industries, analysts, academicians, and the press.

In his speech, Ahmad Mukhlis Yusuf revealed that the determination of theme in this steel industry is not a temporary, which is the issue of the steel industry as a strategic industry will continue to exist until next in the future. LKBN ANTARA as state-owned National News Agency has helped to maintain the unity agenda for the Homeland.

Then through this seminar, Sjafrie is inviting all parties in focusing and understanding the importance of steel industry for empowerment in the defense industry. That by increasing the capacity of the steel industry from upstream to downstream which has aggressively implies the important role of the steel industry in the industrialization era. Therefore in building a steel industry base which to be implemented properly is need supports from all elements to facilitate the process and provide incentives according to the rules.

Ministry of Defense RI is focusing on how the steel industry could be optimized and could be played role in the domestic industry, which are the steel in the upstream industry as raw materials  and in the downstream industries as production.

Sjafrie Sjamsoeddin explained, Ministry of Defense as a regulator and supervisor is encouraging the defense industry to improve production capacity. While as a consumer encourages the defense industry to be used for military and police.

He hopes, it will be formulated the strategic steps to restore the glory in the steel industry so that it could meet domestic needs to the maximum and marketable. "That we need an effort to optimize the synergies and synchronization to improve the role of steel industry in domestic production to support the revitalization of strategic industries," he said.

In legislative perspective, explained that steel is a major component in the revitalization of strategic industry because of supplying defense equipment metal. The state also must secure the supply of its strategic metals. Thus, the presence of the steel industry should be the property of the State in order to avoid dependence from abroad that would hamper the national strategic industry.

Therefore, two main issues which have to be resolved by government are increasing the capacity/production quality and giving the protection of the national steel industry.

Tb. Hasanuddin explained, "What the government can do is to secure domestic supplies of iron ore through the regulation/policy that allows increasing in production capacity and quality of the national steel industry. Afterwards is increasing capital support to PT Krakatau Steel as BUMNIP (State Owned Defense Industry-red) which contribute to supply the needs of strategic metals. "

"It is also enhancing the cooperation between the user (Kemhan), Strategic Industries (PINDAD, PT PAL, etc.) and strategic metal industry (PT Krakatau Steel). The last is to encourage research and development of national metal industry, "he added.

Meanwhile, Connie R. Bakrie underscores the steel and national security issues as the need to admit the important relationship and interdependence of national steel security and strong national defense. That a strong and proper steel industry in the country is very important for IndonesiaAs national defense and economic security of the country, where in every military platform is depends on the steel which produced in the country.

"The ability of the steel industry to supply the defense base will continue to depend on the ability of the steel industry which can compete in the commercial market," he added.

On the other hand, financing for investment in the steel industry were made possible supported by banking and capital markets, according to the real needs of industry players. Ryan Kiryanto asserted, banking in the country is ready to provide financial support for the development of the national steel industry much less the steel needs in the world after the earthquake and tsunami that tend to increase.

That the development of the national steel industry will further strengthen the resilience of the national economy since the steel industry is well aligned with infrastructure industry and other strategic industries. "We are optimistic that banks will help provide funding to boost national steel production because of the prospect ahead is enormous," he said.

According to Ryan Kiryanto, the steel industry will become a locomotive for national economic growth if supported by the government, parliament, and business partners (private). Moreover, he added, the banking sector currently has excess funds that can not be distributed, even the government itself has Rp600 trillion of funds that also have not been distributed. "Therefore, the capital which required for the development of the national steel industry is actually no problem, just need to implement it," he said.

Referring to Law No. 3 Year 2001 Article 1 of the national defense system involving all the potential of national resources, the existence of PT Krakatau Steel as a national steel industry has a strategic meaning to support the fundamental of the state defense independence. Therefore, in order to support the revitalization of Military and the independence of National Defense Industry, Fazwar Bujang said that, "PT Krakatau Steel is ready to provide and to develop the special steel needs required by the defense industry."

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