Posted on 11 Mar 2016
"Our growth depends on acceleration of infrastructure development," Hidayat Triseputro, IISIA chairman, said in recent interview.
President Joko Widodo increased infrastructure spending this year to Rp 313 trillion ($24 billion), up by almost a half from Rp 213 trillion last year.
"This year, we start to see impact from the government's program. We hope it will continue until the year end," Hidayat added.
The government has also tightened supervision on some steel imports and requires its projects to source their building material from domestic producers, aiming to protect the local industry.
Global steel prices plunged in the past year as China's supply went unsold in the country due to its slowing economy, prompting Chinese producers to dump their product abroad, including to Indonesia.
I Gusti Putusuryawiryawan, director general for metal, machinery, transport and electronics at the Industry Ministry, said that the government has implemented a floor price on steel, based on their domestic contents and compliance to the Indonesian Standard Certification, or SNI.
