The Indonesian Iron and Steel Industry Association (IISIA) has said it is ready to support the government’s construction projects under the upcoming administration of President-elect Prabowo Subianto. These projects include the Nusantara Capital City (IKN) and a plan to build three million homes per year.
The construction sector currently uses 52% of the steel produced domestically, the official said. It also stressed that the ongoing IKN project and housing initiative are not expected to significantly change the construction sector’s market share. This is because the national steel industry is operating at less than 80% of its capacity, meaning it can meet the increasing demand without straining other manufacturing sectors. It was also underlined that the steel sector has the potential to perform strongly if there are no disruptions in the domestic market. However, it has been warned that international geopolitical conflicts could affect Indonesia’s supply of imported iron ore, a critical raw material for steel production.
Experts have called for reforms in the management of housing projects to support a target of building three million homes per year. This target significantly exceeds the previous target of one million homes per year. Proposals include creating a new regulatory body or restructuring the existing housing department to accelerate progress toward this goal.
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