RI, Korea agree to boost steel output

The governments of Indonesia and South Korea have reached an agreement to cooperate in boosting Indonesia?s steel production to 10 million tons by 2025 as part of efforts to help accelerate industrialization process.

Minister of Foreign Affairs Retno Marsudi was quoted by Antaranews.com as saying that the agreement was reached during President Joko Widodo (Jokowi)?s visit to South Korea Monday. ?During the meeting, discussions were focused on efforts to increase steel production (in Indonesia) to 10 million tons. A roadmap has been agreed by both sides on May 12,? she said.

She added that Indonesia?s state-controlled steel maker PT Krakatau Steel Tbk will work together with South Korea?s Posco to meet the higher steel production volume in Indonesia.

Retno said that increasing the steel production will help Indonesia cuts dependency on import, which to date accounts for about half of the country?s steel consumption. Dependency on import will hamper Indonesia?s industrialization efforts.

Triawan Munaf, Head of the Creative Economy Agency, said that steel production is projected to increase to 5-6 million tons by 2019. (*)