It was understood that Indonesia’s government officials called for loosening scrap import regulations at a conference on the supply of steelmaking raw materials. Indonesia intended to reduce its dependence on imported billets by increasing scrap imports and increasing domestic steel production.

Indonesia’s Minister of Industry, Agus Gummiwang Kartasasmita, indicated that Indonesia’s current production capacity of steel could only meet 40% of domestic steel demand, and if the capacity utilization rate could be increased, then 70% of Indonesia’s steel consumption could be met by then. To achieve this, scrap metal imports must be increased to 9 million tons.

Indonesia’s authorities also encourage Indonesian steel manufacturers to continuously update the technology used in steel production in order to be more competitive in quality and price than foreign steel.