Development of steel bar industry in Indonesia.
Steel bar supply in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago. still falls far short of requirement. The main hurdle HURDLE, Eng. law. A species of sledge, used to draw traitors to execution. keeping development of steel bar industry sluggish in the country is lack of competitiveness of steel billet industry in the upstream From the consumer to the provider. See downstream.
(networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger sector. The root cause could be traced further to lack of integration with industry producing feedstock--iron ore, sponge iron Sponge iron is the product created when iron ore is reduced to metallic iron, usually with some kind of carbon (charcoal, etc), at temperatures below the melting point of iron. and pellets.
Indonesia has rich mineral resources including iron ore reserves which have been discovered in various areas mainly in South Kalimantan South Kalimantan (Indonesian: Kalimantan Selatan often abbreviated to Kalsel) is a province of Indonesia. It is one of four Indonesian provinces in Kalimantan - the Indonesian part of the island of Borneo. The provincial capital is Banjarmasin. . However, the country has failed to make use of its natural wealth. The country has no technology and fund to process iron sand into steel basic materials to feed the domestic industries in the mid and downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). sectors.
The country has exported its iron sand production mainly to China and imports iron basic materials--iron ore, sponge iron, and pellet pel·let
1. A small pill; a pilule.
2. A small rod-shaped or ovoid mass, as of compressed steroid hormones, intended for subcutaneous implantation in body tissues to provide timed release over an extended period of time. . The dependence on import for basic material makes the country's steel bar products less competitive facing imported products.
The production capacity of the country's steel billet and steel bar industries is enough to meet the domestic requirement but the factories have been too old and inefficient. Therefore, they could no longer operate at full capacity.
However, some producers of steel bars still invested to expand their capacity in 2007 and 2008. There are 15 companies having secured investment license from the Capital Investment Coordinating Board in the first 4 months of 2008. They planned a total investment of around Rp2 trillion One thousand times one billion, which is 1, followed by 12 zeros, or 10 to the 12th power. See space/time.
(mathematics) trillion - In Britain, France, and Germany, 10^18 or a million cubed.
In the USA and Canada, 10^12. in steel industry including steel bar manufacturing in Indonesia.
The country still imported large volume of billet to feed steel bar industry such as wire rod a metal rod from which wire is formed by drawing.
See also: Wire factories and concrete reinforcing iron (reinforcement reinforcement /re·in·force·ment/ (-in-fors´ment) in behavioral science, the presentation of a stimulus following a response that increases the frequency of subsequent responses, whether positive to desirable events, or bar) factories. Imports make up around 53% of the country's total requirement of billet in the country.
Demand for steel bars especially from the property sector and construction sector has been weak since the 150% fuel price hikes late 2005 and it was worsened with another 30% fuel price hike last May and the soaring soaring: see flight; glider.
Sport of flying a glider or sailplane. The craft is towed behind a powered airplane to an altitude of about 2,000 ft (600 m) and then released. price of steel basic materials in the world market.
The prices of steel have increased with rising demand from fast growing economies like China and India India, officially Republic of India, republic (2005 est pop. 1,080,264,000), 1,261,810 sq mi (3,268,090 sq km), S Asia. The second most populous country in the world, it is also sometimes called Bharat, its ancient name. India's land frontier (c. .
The price of iron ore rose from US$ 200 per ton by the end of 2007 to US$ 250 per ton early 2008. Meanwhile, the price of crude oil has surged from record to another record high exceeding the level of US$130 a barrel in mid 2008. The price of coal has also climbed to a all time record.
Description of product
Steel products could be divided into two types sheet and bars. Steel sheets are produced from slabs and steel bars from billet, bloom bloom
1. the general appearance of the surface. In carcass meat it is the glistening, transparent effect and the gentle pink color that gives a good bloom to the carcass. It is the result of proper tissue hydration coupled with the correct proportions of fat, connective tissue and and ingot ingot
Mass of metal cast into a size and shape such as a bar, plate, or sheet convenient to store, transport, and work into a semifinished or finished product. The term also refers to a mold in which metal is so cast. . Billet is produced from sponge iron and, pellet and scrap.
Downstream products of steel bars are steel wires, concrete reinforcing iron, angle iron and profile iron used mainly in the property and construction sectors.
The country's billet production capacity has not yet fully utilized but capacity expansion has continued by some producers. The production capacity of billet was recorded at 4.53 million tons in 2005, up to 5.56 million tons in 2006 and up again to 6.04 million tons in 2007.
Among the companies investing in billet industry in 2007 was PT. Sanex Steel Indonesia, which built a new factory with an annual capacity of 200,000 tons per year in Cikupa, Banten For the Banten meteorite of 1933, see .
For the sultanate, see .
For the city and harbor, see .
Banten is a province of Indonesia, located at the western end of Java Island. Banten has an area of 9,160.7 km² and population of 9,083,114 (2005). . The company uses machines form China. PT. Manna Jaya Jaya (born Maria Luisa Ramsey on March 21, 1970, in Manila, Philippines) is a Filipino pop singer with African American ancestry. Biography
She is known in the Philippines as the Queen of Soul. built a new billet plant with a capacity of 4,000 tons per year.
PT. Krakatau Steel (KS) planned to increase its billet production capacity by 1 million tons in 2009.
KS fares better than other steel makers in the country as it has integrated facility producing some of the basic materials to feed its factories in the midstream mid·stream
1. The middle part of a stream.
2. The part of a course that is neither at the beginning nor at the end: the midstream of life.
Noun 1. and downstream sectors. Currently PT KS is preparing the construction of an iron ore plant in South Kalimantan in cooperation with PT. Aneka Tambang (Antam).
KS is he only billet producer using sponge iron as the feedstock feed·stock
Raw material required for an industrial process.
Noun 1. feedstock - the raw material that is required for some industrial process
raw material, staple - material suitable for manufacture or use or finishing in addition to scrap. Other producers use only scrap with electric induction Suppose a charged object is brought near an uncharged one. The charge, in the uncharged object, then gets 'sepated out'. The 'opposite' charge moves to the nearer end and the like charge move to the 'farther end' of the uncharged object. technology. In other countries most steel casting Steel casting is a manufacturing process in which molten metal is poured into a mold, allowed to solidify within the mold, and then the mold is broken and the solid piece is taken out. factories use the technology of blast furnace blast furnace, structure used chiefly in smelting. The principle involved in this means of extracting metals is that of the reduction of the ores by the action of carbon monoxide, i.e., the removal of oxygen from the metal oxide in order to obtain the metal. .
The increase in production capacity amid low capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. in billet industry is probably attributable to relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation.
2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. of small steel casting factories form China. China has in the past several years restructured its steel industry requiring a steel casting factory to have a capacity of at least 10 million tons
The machines relocated re·lo·cate
v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates
To move to or establish in a new place: relocated the business.
v.intr. from China use electric induction technology with iron scrap as basic material. The production capacity of the machines is relatively small not more than 10,000 tons
Pangeran Karang Mount Karang or Gunung Karang is a volcano at the western most end of Java, Indonesia.
Whitten, T; Soeriaatmadja, R. E., Suraya A. A. Murni the largest
Among major players in billet and steel bar industry are PT. Pangeran Karang Murni (PKM PKM Pokémon
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PKM Patrol Killer Medium (type of naval battle ship)
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PKM Polskie Kólko Miedzykolegialne ), PT. Krakatau Steel (KS), and PT. Ispatindo.
The production capacity of PKM is 803,000 tons/ year, KS and Ispatindo each 700,000 tons/ year.
The billet and steel bar industries are not supported with the availability of supply of basic materials, therefore, billet industry is not expected to grow as expected in the coming years.
The country's production of billet has fluctuated in the past several years. Production has been dominated by a few major producers PKM, Ispatindo and KS.
The production grew 18% annually in the period of 2004-2007 with production averaging 1.49 million tons per year.
In 2005, billet production that grew 44.3 % to 1.73 million tons from the previous year to follow the revival of the property sector. In Year 2006 the production fell as a result of the oil fuel price hikes late 2005. In 2007, billet production rose again to 1.92 million tons. In 2008, production is expected to stagnate stag·nate
intr.v. stag·nat·ed, stag·nat·ing, stag·nates
To be or become stagnant.
[Latin st with the oil fuel (BBM BBM Brokeback Mountain (book/movie)
BBM Bureau of Broadcast Measurement
BBM Bachelor of Business Management
BBM Break Before Make
BBM Bread Board Model
BBM Bulk Business Mail
BBM Bahn Brenner Motorsport ) price hikes in May.
The BBM price hikes resulted in a decline of 10%-15% in the use of BBM in steel industry.
Capacity utilization low
The country's billet production still is far below the production capacity despite the annual increase. In the period of 2003-2007, capacity utilization averaged 29.3%. The low capacity utilization is caused by low competitiveness facing imported products. Only major producers are competitive in prices and quality. The capacity utilization is not expected to improve much in the coming years.
Imports of billet growing
Imports of billet are growing as domestic producers could not improve productivity despite growing demand. Growing demand results in growing supply that could be provided through imports.
In the period of 2004-2007 billet imports grew by 19.3% annually on the average. In 2005, imports totaled 1.28 million tons valued at US$580 million--up in volume by 5.5% from the previous year. In 2006, imports grew sharper by 27.9 % to 1.64 million tons valued at US$ 691.4 million.
The increase in the imports amid sluggish growth in domestic consumption was largely caused by speculation as consumers raise stock on the prospects of an increase in the prices of the material. Demand for billet in the country was weakened by a sharp increase in the prices of BBM late 2005.
In 2007, the revival of the property sector especially in large city like Jakarta Jakarta or Djakarta (both: jəkär`tə, jäkär`tä), city and special district (1990 pop. 8,227,746), capital and largest city of Indonesia, NW Java, at the mouth of the canalized Ciliwung River, on Jakarta and Surabaya Surabaya, Surabaja, or Soerabaja (srəbī`ə, Du. s caused a sharper increase in billet imports.
In 2008, imports are expected to stagnate with the BBM price hike in May weighing on the property sector.
Exports of billets low
The country's production of billet is used mainly to feed domestic industry. Exports are insignificant though growing.
In 2006, exports reached 4,650 tons valued at US$5.800 million, up in volume 263% from the previous year. In 2007, exports fell slightly to 4,290 tons valued at US $ 3.07 million.
Billet Consumption Growing
Billet consumption in the country has increased in the past several years to follow the economic growth of 5%-6% annually. The property sector is the largest consumer.
Billet consumption in the period of 2003-2007 averaged 2.84 million tons per year and consumption growth averaged 17.8% annually in the 2004-2007 periods. Consumption of billet grew from 1.9 million tons in 2003 to 3.64 million tons in 2007.
In 2006, consumption totaled 4.15 million tons or growing by only 6.8%. In 2007, billet consumption grew again by 13.3% to 4.52 million tons. The revival of he property sector resulted in an increase in billet consumption.
In 2008, consumption is expected to grow still but with a lower rate. Consumption in 2008 will be determined much by a number of factors-BBM prices, Bank Indonesia Bank Indonesia is the central bank of Indonesia. Its current governor is Burhanuddin Abdullah. History
Bank Indonesia was founded on July 1, 1953, in the Sukarno era - from the nationalization of De Javasche Bank, a Dutch bank dating from colonial times. benchmark interest rate Benchmark interest rate
Also called base interest rate, it is the minimum interest rate investors will demand for investing in a non-Treasury security. It is also tied to the yield to maturity offered on the comparable-maturity treasury security that was most recently issued (on-the-run). , which has been raised to 8.5%. The increase in the benchmark interest from 8% to 8.5% so far in 2008 will have much effect on the property sector as most buyers use credit.
Downstream steel bar industry
Steel bar factories use billet as he basic material to produce wire rod, concrete reinforcing iron, and angle iron. The country's production capacity for wire rod has not grown significantly over the past years. A strong growth of 14% was recorded only in 2005 to 1.39 million tons from 1.21 million tons in the previous year.
Until 2007, the production capacity for wire rod remained the same at 1.39 million tons as against requirement of only 1.1 million tons per year.
Ispatindo the largest
The country has only two major producers of wire rod--Ispatindo and KS. Ispatindo is the largest with a production capacity of 650,000 tons/ year with KS having a capacity of only 275,000 tons / year.
Other producers have only a capacity of 40,000 tons/ year on the average. The largest among them is PT. Industries Badja Garuda with a capacity of 75,000 tons
Production of wire rod stagnant stagnant /stag·nant/ (stag´nant)
1. motionless; not flowing or moving.
2. inactive; not developing or progressing.
The production rate of wire rods has been almost unchanged in the past several years. The annual production averaged 919,800 tons in 2003-2007 fluctuating fluc·tu·ate
v. fluc·tu·at·ed, fluc·tu·at·ing, fluc·tu·ates
1. To vary irregularly. See Synonyms at swing.
2. To rise and fall in or as if in waves; undulate.
v. by less than 10%.
In 2005, production was 914,000 tons or down 7,5 % from the previous year and in 2006, the production fell again 6.1 % to 858,000 tons. In 2007, the production rose again 7.2 % to 920,000 tons. The capacity utilization of wire rod industry was 70.12%
Imports and exports fluctuating
Imports of wire rod have fluctuated in the past several years. In 2005, imports of wire rod reached 501,000 tons or up 37.17 % from the previous year. In 2006, imports fell 28.67% to 357,300 tons, and in 2007 imports rose again 16.49 % to 416,200 tons. See the following table.
Wire rod exports did not change from an average of 197,500 tons a year. In 2005, exports reached 190,500 tons down 28.2% from the previous year. In 2006, exports grew 2.1% to 194,500 tons bur down again 13.4% to 168,500 tons in 2007. See the following table.
Consumption of wire rod
Similarly consumption of wire rod did not change much. In the period of 2004-2007, consumption of wire rod grew 4.8% on the average a year with annual exports averaging 1.1 million tons.
Concrete reinforcing iron (Reinforcement bar)
Concrete reinforcing iron is used much in the construction sector. The country's production capacity for concrete reinforcing iron has remained unchanged in the past several years averaging at 4.3 million tons per year. In 2005 the production capacity fell 6.1% but rose again 7% in 2006.
The country's production of concrete reinforcing iron has tended to decline in the past several years with annual production averaging 1.81 million tons in the 2003-2007 periods.
Production of concrete reinforcing iron peaked in the five years period at 2.01 million tons in 2005, up 19.7 % from the previous year.
In 2006, the production fell 9.6 % to 1.82 million tons. It fell further to 1.74 million tons in 2007. The decline was attributable to fuel price hikes late 2005 and price instability instability /in·sta·bil·i·ty/ (-stah-bil´i-te) lack of steadiness or stability.
detrusor instability . In 2007, the price of concrete reinforcing iron surged from Rp 4,300 per kg to Rp 8,000 per kg.
In 2008, the production is expected to remain unchanged on a number of factors price instability and fuel price hikes in May, 2008.
The capacity utilization of the country's concrete reinforcing iron industry is relatively low averaging 41.8%. The production, however, is enough to meet domestic requirement. The producers could not expand market abroad on weak competitiveness in price; therefore, the industry could not be expected to increase its capacity utilization.
Imports and exports I
The country's import of concrete reinforcing iron has tended to increase though remaining small. In 2005, imports shot up in volume 1,769% to 13,300 tons from the previous year.
In the following two years imports fluctuated as shown in the following table.
Exports in 2003-2077 averaged 430 tons per year. The export volume is not expected to grow significantly in the coming years.
Domestic consumption of concrete reinforcing iron has largely been supplied domestically. Consumption grew slightly in the past five years by 2.6 % annually in 2004-2007. Annual consumption averaged 1.83 million tons a year.
The steel bar industry in Indonesia has been faced with price instability in he past two years. The prices of concrete reinforcing iron in 2007 rose 86 % from Rp. 4,300 /kg to Rp 8,000/ kg.
Early 2008, the prices of concrete wires and nails surged 180% to Rp14, 000 per kg from Rp 5,000 in 2007. The price hike followed the increase in the price of basic material wire rod to Rp 9,000 per kg.
The price hikes were caused by a number of factors including an increase in the price of iron ore to US$150 per ton early 2008, energy price rise and coal price increase. The price hikes was driven by strong demand from growing economies in Asia-China and India.
Investment in steel bar industry
In 2007, investment was recorded in upstream sector of steel industry such as in billet industry.
PT. Inti Surya Sentosa, a domestic investment (PN) company built a steel factory in Manyar, Gresik, East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. producing with a capacity of 20,000 tons of concrete reinforcing iron and 4,000 tons of angle iron a year.
Meanwhile, PT. Manna Jaya Makmur built its factory in Bangsal, Mojokerto, East Java with an annual production capacity of 30,000 tons of concrete reinforcing iron, 10,000 tons of deformed de·formed
Distorted in form. steel bars, 10,000 tons of angle iron and 4,000 tons of billets.
PT. Sanex Steel Indonesia built a steel factory with an annual capacity of 200,000 tons of billet in Cikupa, Banten. The factory use machines from China.
In 2008, interest in investment is also high as indicated by plans by PT. Lautan Steel Indonesia, and a number of other investors from China--PT. Hua Fung Metal, PT. Century Metalindo, PT. SMS (1) (Storage Management System) Software used to routinely back up and archive files. See HSM.
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PT. Lautan Steel Indonesia will build concrete reinforcing iron plant with an annual capacity of 200,000 ton per year also producing billet with a capacity of 240,000 ton in Serang Se`rang´
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The four Chinese investors plan to produce downstream steel products such as concrete reinforcing iron, ingot and steel rolling.
Another Chinese company PT. Liang Ying Nuansa Indonesia plans to build a concrete reinforcing iron plant with a capacity of 11,750 tons per year in Mojokerto, East Java, with an investment of Rp.141 billion.
* The installed capacity of Indonesia's steel bar industry is large but capacity utilization is low averaging 35.6% for billet and 41.8% for concrete reinforcing iron in 2003-2007.
* Low capacity utilization of billet industry was attributable to lack of integration with basic material producers while the price of pellet and sponge iron are expensive making the industry less competitive.
* Capacity utilization of wire rod industry is quite high at 70.1 % with capacity not far exceeding requirement.
* Capacity utilization of concrete reinforcing iron industry is low though imports are also small.
* Exports of concrete reinforcing iron could be expanded as he prices are not competitive.
* Steel bar industry could increase its capacity utilization and improve efficiency if it is integrated with upstream steel industries producing the basic materials--pellet and sponge iron
* The prices of steel bars began to surge in 2007 to follow the basic material price hikes and energy cost.
* The country could take advantage of the price hikes but lack of integration between the industries in the upstream and downstream sector make the industry less competitive.
* In the coming years investment is expected to increase in the steel industry especially in the upstream sector.
Table--1 Production capacity of billet 2003 - 2007 Year Production capacity Growth (%) (ton /year) 2003 4,735,000 2004 4,535,000 -4,2 2005 4,535,000 0,0 2006 5,564,200 22,7 2007 * 6,042,200 8,6 Note: *) estimate Source: Data Consult Table--2 Billet producers and capacity (tons) Producers Capacity Location PT. Pangeran Karang Murni 803,000 DKI Jakarta PT. Krakatau Steel 700,000 Banten PT. Ispatindo 700,000 East Java PT. Jakarta Cakra Tunggal 420,000 DKI Jakarta PT. Jakarta Steel Megah Utama 300,000 DKI Jakarta PT. Gunung Garuda 300,000 West Java PT. Budi Dharma Jakarta 250,000 DKI Jakarta PT. Master Steel Manufacturing 220,000 DKI Jakarta Co. Ltd PT. Inter World Steel Mills 210,000 Banten PT. Sanex Steel Indonesia 200,000 PT. Gunung Gahapi Sakti 200,000 North Sumatra PT. East Java Taman Steel 200,000 East Java Manufacturing PT. Hanil Jaya Metal Works 180,000 East Java PT. Inter General Yaja Steel 160,000 Central Java PT. Toyogiri Iron & Steel 120,000 West Java PT. Growth Sumatera 78,700 North Sumatra PT. Pulogadung Steel Manufacturing 60,000 DKI Jakarta Co. Ltd PT. Barawaja 40,000 South Sulawesi Total 5,141,700 Source: Industry Ministry, Data Consult/ICN Table--3 Production of billet 2003 - 2007 Year Billet (ton) Growth (%) 2003 1,042,000 -- 2004 1,199,000 15.07 2005 1,730,000 44.29 2006 * 1,580,000 -8.68 2007 * 1,921,000 21.59 Note *) Estimate by Data Consult Source: Data Consult Table--4 Billet capacity utilization, 2003 - 2007 Year Cap. util. (%) 2003 22.0 2004 26.4 2005 38.1 2006 28.4 2007 31.8 Average 29.3 Source: Data Consult Table--5 Volume of billet imports, 2003 - 2007 Year Volume of imports Growth Value (ton) (%) (US$ million) 2003 876,252 203.8 2004 1,217,472 38.9 521.6 2005 1,284,076 5.5 579.7 2006 1,641,705 27.9 691.4 2007 1,726,645 5.2 934.9 Average 1,349,230 19.3 Source: Industry ministry Table--6 Volume of billet exports, 2003 - 2007 Year Volume of exports Growth Value (tons) (%) (US $ 000) 2003 5,960 -- 2.62 2004 652 -89.1 3.11 2005 1,283 96.9 1.73 2006 4,657 262.9 5.88 2007 4,296 -7.7 3.07 Average 65.7 Source: BPS, Industry ministry Table--7 Consumption of billet 2003 - 2007 Year Production Exports Imports Consumption Growth (tons) (tons) (tons) (ton) (%) 2003 1,042,000 5.960 876.252 1,912,292 -- 2004 1,199,000 652 1.217.472 2,415,821 26.3 2005 1,730,000 1.283 1.284.076 3,012,793 24.7 2006 1,579,909 4.657 1.641.705 3,216,957 6.8 2007 1,921,025 4.296 1.726.645 3,643,374 13.3 Average 2,840,247 17.8 Source: Industry ministry Table--8 Wire rod production capacity, 2003 - 2007 Wire rod Growth Year (tons /year ) (%) 2003 1,215,000 -- 2004 1,215,000 0 2005 1,390,000 14 2006 1,390,000 0 2007 * 1,390,000 0 Note *) estimate Source: Data Consult Table--9 Producers of wire rod and capacity Producers Production Location capacity (tons/ y) PT. Ispatindo 650,000 East Java PT. Krakatau Steel 275,000 Banten PT. Industries Badja Garuda 75,000 North Sumatra PT. Gunung Gahapi Sakti 72,000 North Sumatra PT. Hanil Jaya Metal Works 60,000 East Java PT. Growth Sumatera 30,000 North Sumatra PT. Jakarta Kyoei Steel Works 20,000 DKI Jakarta PT. Mega Pratama Ferindo 4,000 Banten PT. Citra Jaya Marga Prima Total 1,186,000 Source: Data Consult Table--10 Production and capacity utilization of wire rod industry, 2003 - 2007 Year Wire rod Growth Cap. util. (ton) (%) (%) 2003 919.000 75,6 2004 988.000 7,5 81,3 2005 914.000 -7,5 65,8 2006 858.000 -6,1 61,7 2007 * 920.000 7,2 66,2 Average 919.800 70,12 Note *) estimate Source: Industry ministry, Data Consult/ICN Table--11 Imports of wire rod 2003 - 2007 Year Imports of wire rods Growth (tons) (%) 2003 248,862 2004 365,151 46.73 2005 500,884 37.17 2006 357,284 -28.67 2007 416,207 16.49 Average 377.678 17.9 Source: BPS, Industry ministry Table--12 Exports of wire rod 2003 - 2007 Year Exports Growth (ton) (%) 2003 168,786 -- 2004 265,203 57.12 2005 190,518 -28.16 2006 194,547 2.11 2007 168,526 -13.38 Average 197,516 4.42 Source: BPS Industry ministry Table--13 Consumption of wire rod, 2003 - 2007 Year consumption Growth (tons) (%) 2003 999,076 -- 2004 1,087,948 8.90 2005 1,224,366 12.54 2006 1,020,737 -16.63 2007 1,167,681 14.40 Average 2004 - 2007 1,099,961 4.8 Source: Industry ministry Table--14 Production capacity of reinforcement bar Year Production capacity Growth (tons) (%) 2003 4,347,000 2004 4,347,000 0.0 2005 4,082,000 -6.1 2006 4,364,000 6.9 2007 4,364,000 0.0 Source: Industry ministry Table--15 Production of concrete reinforcing iron, 2003-2007 Production Growth Cap. util. Year (ton) (%) (%) 2003 1,718,000 39.5 2004 1,682,000 -2.1 38.7 2005 2,014,000 19.7 49.3 2006 1,821,000 -9.6 41.7 2007 1,842,626 1.2 40.0 Average 1,815,250 41.8 Source: Data Consult Table--16 Imports of concrete reinforcing iron Reinforcement Growth Year bar (ton) (%) 2003 729 2004 713 -2.1 2005 13,336 1,769.4 2006 33,315 149.8 2007 18,194 -45.4 Source: Data Consult Table--17 Exports of concrete reinforcing iron Exports Growth Year (tons) (%) 2003 715 -- 2004 215 -69.93 2005 438 103.72 2006 290 -33.79 2007 490 68.97 Average 430 Source: Data Consult Table--18 Consumption of concrete reinforcing iron, 2003-2007 Volume Growth Year consumption (ton) (%) 2003 1,718,014 -- 2004 1,682,499 -2.07 2005 2,026,898 20.47 2006 1,854,025 -8.53 2007 1,860,330 0.34 Average 1,828,353 2.6 Source: Data Consult Table--19 Investment in steel bar industrv in Indonesia 2007-2008 Company Capacity Products Location (ton/year) PT. Inti Surya 20.000 Concrete East Java Sentosa reinforcing iron 4.000 Angle iron PT. Manna Jaya 30.000 Concrete East Java Makmur reinforcing iron 10.000 Deform steel bars 10.000 Angle iron 4.000 Billet PT. Sanex Steel 200.000 Billet Banten Indonesia PT. Lautan Steel 240.000 Billet Banten Indonesia 200.000 Concrete reinforcing iron PT. Hua Fung -- Concrete Banten Metal reinforcing iron, ingot, steel rolling PT. Century -- Concrete Banten Metalindo reinforcing iron, ingot, steel rolling PT. SMS Steel -- Concrete Banten reinforcing iron, ingot, steel rolling PT. Power Steel -- Concrete Banten Indonesia reinforcing iron, ingot, steel rolling PT. Liang Ying 11.750 Concrete East Java Nuansa Indonesia reinforcing iron Source: Data Consult