INDUSTRY.co.id - Semarang - The Indonesian Employers' Association (Apindo) of Central Java stated that the steel industry in Central Java is difficult to grow because of high operational costs.

"Currently there are only two members of our company in the steel sector that still survive," said Chairman of Apindo Central Java Frans Kongi in Semarang, Friday (28/07/2017)

According to Frans, the condition is not only happening in Central Java, but also at the national level. In fact, according to data from Apindo, steel production in Indonesia is only one percent compared to steel production from China.

"In comparison, in China within a year can produce up to 900 million tons of steel, while in Indonesia only 9 million tons per year," he said.

Of the total, the contribution from Central Java is only in the range of 30,000 tons per year, he said.

As a result, in one month, Central Java had to import between 10,000 and 20,000 tons of steel from Jakarta.

"Moreover, the government is currently focus on accelerating national infrastructure development, one of which is in Central Java, so the demand for steel will be higher," he said.

Related to Apindo's efforts to attract steel investors to expand to Central Java, he said, is not easy to do.

"What is certain is that raw materials and auxiliaries are still imported, so it is difficult to operate in Indonesia," he said.