The Central Statistics Agency (BPS) noted that the base metal industry will experience growth of 14.8 percent throughout 2022, with gross domestic product (GDP) at constant prices (ADHK) reaching IDR 124.29 trillion. This growth was boosted by increasing domestic steel consumption.
Melati Sarnita, Chair of the Indonesian Iron and Steel Industry Association (IISIA) Flat Product Cluster, said last year's steel consumption, which increased by 7 percent, was the main reason for the base metal industry to grow by 14 percent.
"Supported from the increase in steel consumption throughout 2022 which grew by 7 percent in addition to an increase from the export side," said Melati when contacted by Bisnis on Monday (13/2/2023).
Melati explained that last year, steel consumption reached 16.6 million tons, while in 2021 the consumption was around 15.5 million tons.
The steel industry is claimed to be unaffected by global geopolitical upheavals such as the wars between Russia and Ukraine. Because, said Melati, the increase in steel consumption was more due to the stretching domestic market.
"Domestic consumption in general has not been affected by geopolitical instability due to the war and has even continued to grow driven by the implementation of national infrastructure projects and the growth of the manufacturing industry," he explained.
DataIndonesia.id notes that the growth in the performance of the base metal industry in 2022 is the highest growth in the last decade. This performance has made the basic metal industry the processing industry sub-sector which recorded the highest growth last year.
This record was successfully achieved after overtaking the transportation equipment industry which was in first position in 2021.
Since 2013, the base metal industry has been observed to grow. In 2021, this industry's ADHK GDP was IDR 108.27 trillion, an increase of 11.5 percent from the previous year which reached IDR 97.72 trillion. The industry continues to increase from year to year from ADHK's GDP in 2013 of IDR 67.97 trillion.
