Government to protect steel industry

State Minister of State-Owned Enterprises Rini Soemarno said the government would protect the domestic steel industry including state-controlled giant PT Krakatau Steel Tbk against the massive inflow of imported products among others by imposing import duties.

Speaking to reporters Tuesday during a visit to the Cilegon-based, Banten Province, company, Rini said that similar safeguard import tariff has also been applied by other countries. She, however, did not provide further details.

Krakatau Steel President Director Irvan K. Hakim said his company has been seeking protection from the government amid a surge in import in the wake of a global oversupply situation due as products from China floods the market, which has dragged price of steel down.

He said that import has surged by more than 100 percent from 3.4 million tons in 2009 to 8.2 million in tons in 2013. He said that import now accounts more than 60 percent of domestic steel consumption of about 12.7 million tons in 2013. (*)