The Ministry of Industry (Kemenperin) noted that the base metal industry grew 7.9% year on year (yoy) in the first quarter of 2022. The growth was driven by increased foreign demand such as ferrous alloy nickel and aluminum oxide products as well as national consumption activities in the iron and steel industry sector. Secretary of the Directorate General of Metal, Machinery, Transportation Equipment, and Electronics (ILMATE) Ministry of Industry M Arifin said the base metal industry was a sector that was able to survive the pandemic and recorded positive growth since the first quarter of 2020. "This positive growth in the base metal industry sector is in line with policy improvements at the Ministry of Industry regarding the national smart supply-demand mechanism for steel with measurable technical considerations," Arifin said in a statement quoted by Antara, Friday (27/5). In addition to the increase in demand, the increase in GDP of the base metal industry is in line with the development of the smelter industry in Indonesia. Currently, Indonesia has an alumina refinery smelter industry with a capacity of 1 million tons, and will be increased to 2 million tons per year.
The industry is also supported by a hydrometallurgy smelter industry that will produce mixed hydroxide, an alloy of nickel and cobalt which is needed as raw material for batteries. Not only that, there is one stainless steel-based industry located in Konawe, Southeast Sulawesi which produces stainless steel billets, and three nickel smelter industries that have been established to produce nickel pig iron. In addition to base metals, the Ministry of Industry also noted that the metal, computer, electronic, optical and electrical equipment industries grew 6.80% in the first quarter of 2022. This achievement was caused by an increase in foreign demand for several products such as other lattice posts of iron or steel, other fences of iron or steel, and cigarette cases instead of iron and steel.
