The Ministry of Industry (Kemenperin) is actively promoting industrial downstreaming as a key strategy to enhance the performance of the manufacturing sector in Indonesia. By the second quarter of 2023, the metal sector had recorded a growth rate of 11.49%, surpassing the national economic growth rate of 5.7%. "In the second quarter of 2023, the metal sector grew by 11.49%, exceeding the national economic growth of 5.7%. This demonstrates the higher growth potential within our steel industry. In the past, we achieved growth rates as high as 20%," stated the Director-General of Metal, Machinery, Transportation Equipment, and Electronics Industry (ILMATE) at the Ministry of Industry, Taufiek Bawazier, during the inauguration of the steel coloring plant owned by PT Tata Metal Lestari (Tatalogam Group) in Purwakarta, as reported by Investor Daily on Monday, October 30, 2023. Taufiek explained that downstreaming in the steel industry is continually promoted to boost economic growth. Investments in downstreaming will enhance production capacity and continuity to replace imports. According to Taufiek, development in Indonesia must be supported by domestic products. Therefore, Kemenperin has adopted various policies supporting the domestic industry, including green industry certificates and Indonesian National Standards (SNI).
He also emphasized that the industrial sector must achieve carbon neutrality or net zero emissions (NZE) by 2050, which accelerates the national NZE target of 2060. "The steel industry is one of the specific sectors highlighted in this decarbonization plan," he said. Taufiek acknowledged that challenges in the steel industry won't be easy, as transformation requires technology, strength, and skills from human resources. Taufiek commended the green industry principles implemented by PT Tata Metal Lestari, such as the use of eco-friendly machinery, solar energy, and waste management. At the same event, Stephanus Koeswandi, Vice President of PT Tata Metal Lestari (Tatalogam Group), explained that the inauguration of the color coating line plant is part of a project named the Phoenix Project. This project consists of three phases, with an investment of IDR 1.5 trillion in the first phase to build an eco-friendly steel coloring plant. With the operation of this plant, it is expected to create a multiplier effect for micro, small, and medium-sized businesses (MSMEs), small and medium-sized industries (IKM), households in the vicinity, and other industries, particularly in roll forming in Indonesia. This will enable them to access high-quality raw materials.
