Japan and Indonesia Hold First Steel Dialogue in Jakarta

Japanese and Indonesian governmental and private steel interests held first meeting for steel dialogue in Jakarta on February 10th to share each country’s steel industry information mutually. Indonesian delegation reported steel demand and steel output capacity expansion projects in the country. They exchanged steel industry information of each country and agreed in the next meeting in Tokyo in Q3 2011.

Japanese delegation included Mr. Masaki Koito, director of iron & steel division of Ministry of Economy, Trade & Industry, and managing directors of Japan 5 integrated steel makers. Indonesian delegation included Mr. I G. Putu Suryawirawan, director of metal division of Ministry of Industry, and officials of Indonesian Iron & Steel Industry Association and major steel makers.

Indonesian delegation gave an overview steel demand in the country would increase along economic growth, infrastructure organization and manufacturing industry’s capacity expansion. Krakatau Steel, Indonesian national steel maker, and POSCO of South Korea are cooperating in blast furnace construction to expand steel output capacity along the demand growth. Mr. Putu Suryawirawan showed an expectation for Japanese steel makers’ investment in Indonesia.

Indonesian delegation also explained about USDFS (User Specific Duty Free Scheme) of EPA (Economic Partnership Agreement) between Japan and Indonesia. USDFS utilization by Japanese steel product exporters was 250,000 tonnes in the first phase for July 2008-June 2009 against initially planned 540,000 tonnes. In the second phase, the utilization increased to 390,000 tonnes against planned 480,000 tonnes. The volume is expected to increase more in the third phase.