Profile of steel industry in Indonesia.Backgrounds
The country's steel industry has remained in the doldrums doldrums (dŏl`drəmz) or equatorial belt of calms, area around the earth centered slightly north of the equator between the two belts of trade winds. for a number of factors. One of the main factors is heavy dependence on imports for basic materials. Dependence is still high on imports in both 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 and downstream sectors of the industry.
The only integrated steel industry in the country is the state-owned steel maker PT Krakatau Steel (KS), which has the facilities to produce 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. , hot rolled coil (HRC HRC Human Rights Campaign
HRC Human Rights Council (UN)
HRC Human Rights Commission
HRC Hard Rock Cafe
HRC Hillary Rodham Clinton (democratic senator/presidential candidate; former first lady) ), cold rolled coil (CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor. ), etc.. Steel pellets, however, are still imported to produce sponge iron. In addition, PT KS has no capacity enough to produce HRC of certain types such as one with a thickness of less than 3 mm, which is used to feed CRC factories. Its HRC facility could only produce HRC with a thickness of less than
3 mm to feed its own CRC facility. Other CRC producers in the country, therefore, have to rely on imports for the basic material.
Heavy dependence on imports places the country's consumers in a weak bargaining position facing suppliers abroad. Consumers in the country are often facing the sellers' market. The sellers tend to dictate TO DICTATE. To pronounce word for word what is destined to be at the same time written by another. Merlin Rep. mot Suggestion, p. 5 00; Toull. Dr. Civ. Fr. liv. 3, t. 2, c. 5, n. 410. the prices. When the steel prices are high, suppliers of basic material put a higher prices for their basic materials, but when the prices are low suppliers, which are mostly integrated producers, keep their basic material for their own use.
It is not rare that HRC is sold at a price almost the same as that of CRC, that CRC producers in the country could not compete well in the market. It is also often that the prices of imported steel pipes are lower than the price of HRC from which the pipes are produced. The distortion distortion, in electronics, undesired change in an electric signal waveform as it passes from the input to the output of some system or device. In an audio system, distortion results in poor reproduction of recorded or transmitted sound. is a strategy of large producers to control the market and dictate the prices later.
The Strategic Industry Agency, when it was under B.J. Habibie as a research minister, launched development of steel industry as a strategic industry by building integrated project called second generation steel mill. Various feasibility studies have been carried out by international consultancy firms on the integrated steel factory financed by international agencies like UNIDO and JICA JICA Japan International Cooperation Agency
JICA Jimmy Carter National Historic Site (US National Park Service)
JICA Joint Intelligence Collecting Agency from Japan.
It was in the program that Indonesia will have an annual production capacity of 20 million tons per year of steel in 15 years after the program was launched early 1990s.A number for foreign steel makers such as POSCO POSCO Pohang Iron & Steel Co, Ltd of South Korea, BHP BHP
blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries. of Australia, and companies from Germany have indicated interest in building mini mills with an annual capacity of 2 tons per year. Foreign companies have also indicated interest in producing HRC and CRC in the country.
Early 1990s, Indonesia had the largest steel industry in Southeast Asia putting Thailand and Malaysia behind. The prospect is good for integrated steel industry in the country with the large domestic market.
However, with the monetary crisis in 1997/1998, the project has been kept in the pipeline. All plans to develop second generation still mill by Krakatau steel and by private investors were cancelled or shelved.
The Texmaco Group also has plan to build integrated steel industry to produce special steel to feed machine component industry, but the company itself is now virtually bankrupt with large debt. The owner is outlawed for alleged corruption.
Only a few companies could manage to implement their projects after the crisis. The Essar Group The Essar Group is an India-based diversified corporation with interests in telecommunications, shipping, steel, construction, power and oil. The group has an estimated market value of US$ 15 billion and has an annual revenue of US$ 2.2 billion. succeeded in expanding its CRC factory and GI sheet plant. The Gunung Garuda Group has diversified diversified (di·verˑ·s its products from hot rolled plates to pre fabricated fab·ri·cate
tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates
1. To make; create.
2. To construct by combining or assembling diverse, typically standardized parts: buildings including factory building and warehouses.
The steel industry was among the hardest hit by the crisis especially those producing billet and 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. The crisis caused heavy slump in the construction sector that demand for many steel product shrank shrank
A past tense of shrink.
a past tense of shrink
shrank shrink . Many billet factories have been closed.
When the crisis receded PT Krakatau Steel renewed its plan to build its upstream steel industry. It planned to build thin slab flat rolling mill rolling mill: see steel. . The project has attracted investors from Italy, South Korea and other countries.
However, implementation of the project is now in big question after Vice President Jusuf Kalla Jusuf Kalla (born Watampone, South Sulawesi; May 15, 1942) is the current Vice President of Indonesia and Chairman of the Golkar Party. Early life
Jusuf Kalla was born on 15th May 1942 in Watampone, South Sulawesi. said the project to be built in Cilegon is not feasible as it has strong support from the availability of basic material, and guarantee in energy supply. The availability of basic materials, therefore is vital to create a strong steel industry.
Kalla, therefore, suggested development of upstream industry 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. where large reserve of iron ore has been found and energy supply is more guaranteed than if the facility is built in Java.
The problem with South Kalimantan, however, is inadequate infrastructure hat needs large additional investment.
Implementation of the project, however, will likely remain in the pipeline for a longer time to come. The plan to build it in Cilegom has been virtually scrapped and the idea of moving it to South Kalimantan will need further mulling over. PT KS has to start calculation all over again from the beginning.
Since the fourth quarter of 2005, the domestic steel industry has faced marketing problem with large imports of steel products in cheaper price especially from China. China is no longer a major importer of steel products, on the contrary it has large oversupply o·ver·sup·ply
n. pl. o·ver·sup·plies
A supply in excess of what is appropriate or required.
tr.v. o·ver·sup·plied, o·ver·sup·ply·ing, o·ver·sup·plies that has to be disposed of abroad. At the same time the prices of oil fuels shot up in the country resulting in a decline in the buying power Buying Power
The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available.
Also referred to as "Excess Equity. of the people.
Large imports from China led to dumping allegation The assertion, claim, declaration, or statement of a party to an action, setting out what he or she expects to prove.
If the allegations in a plaintiff's complaint are insufficient to establish that the person's legal rights have been violated, the defendant can make a . The government was urged to slap higher import duties ion steel products from China. The call for a rise in import duty was opposed by consumers of steel products from China. Krakatau Steel led the group demanding an increase in the import duties on HRC and CRC. GI Sheet producers strongly opposed the call.
The controversy over import duty on steel products has remained unsolved reflecting the failure of the government to produce a clear policy in the steel industry.
Call for harmonization har·mo·nize
v. har·mo·nized, har·mo·niz·ing, har·mo·niz·es
1. To bring or come into agreement or harmony. See Synonyms at agree.
2. Music To provide harmony for (a melody). of import duties on upstream and downstream products is still waiting for an answer from the government.
In general strategic issued faced by the country's steel industry are :
* Tariff harmonization. The government is still confronted with a dilemma in imposing import duty on steel products. The import duties on steel products are not yet harmonized har·mo·nize
v. har·mo·nized, har·mo·niz·ing, har·mo·niz·es
1. To bring or come into agreement or harmony. See Synonyms at agree.
2. Music To provide harmony for (a melody). between upstream and downstream products.
* Dumping allegation against China Large surplus after over expanded its steel industry China exported its steel products in cheap prices including to Indonesia resulting in marketing problem for local producers notably PT KS. PT KS, therefore filed anti dumping petition with the government against China.
* In the past 3 years Indonesia's imports of steel shot up from US$1.74 billion in 2003 to US$ 4.66 billion in 2005. Imports surged both in volume and value amid rising prices to follow growing demands mainly from the automotive and construction industries before the oil fuel price hikes in Oct. 2005. The oil fuel price hikes caused a market slump resulting in a decline in demand for steel in 2006.
* The increase in the fuel prices and electricity tariff weakened the competitiveness of the country's steel products. In addition the steel industry is no longer efficient with old machines.
* The problems faced by the steel industry results in 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. . Many factories operate at less than 50% of their installed capacity. Some could not even survive the difficulty and were closed.
The products of steel industry from up to down streams consists of flat products and long products. Uppermost in the upstream industry is iron making from iron ore to turn out sponge iron. The following process is steel making process in which, sponge iron and scarp scarp: see escarpment. and hot briquette bri·quette also bri·quet
A block of compressed coal dust, charcoal, or sawdust and wood chips, used for fuel and kindling.
[French, diminutive of brique, brick iron (HBI) are melted into steel in the form of slab as the basic material for flat product and billet as the basic material for steel bars or long product.
The next process hot rolling The metallurgical process of Hot rolling, used mainly to produce sheet metal or simple cross sections from billets describes the method of when industrial metal is passed or deformed between a set of work rolls and the temperature of the metal is generally above its , which is a process to make hot steel basic material thinner in a desired size. The hot rolling process will turn out Hot Rolled Coil and Steel Plate. HRC is make thinner again through cold rolling cold rolling
The rolling of steel or other metal at room temperature to preserve its original crystal structure. to turn out cold rolled coil (CRC), which is used as the basic material for Galvanized Iron Noun 1. galvanized iron - iron that is coated with zinc to protect it from rust
corrugated iron - usually galvanized sheet iron or sheet steel shaped into straight parallel ridges and hollows Sheet (GIS (1) (Geographic Information System) An information system that deals with spatial information. Often called "mapping software," it links attributes and characteristics of an area to its geographic location. ), tin plate, etc..
Hot rolling process also turns out long product in the form of wire rod a metal rod from which wire is formed by drawing.
See also: Wire and reinforcement bar (concrete iron). Wire rod, through cold rolling, is processed to produce wire, nail, etc.
Iron ore generally contains chemicals that have to be removed. Therefore, iron ores have to be processed into sponge iron with high iron content. Sponge iron (Fe) is the product of reduction of 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. or iron ore. In the reduction process, iron ore pellets (Fe2O3 and Fe3O4) and liquefied natural gas liquefied natural gas: see under natural gas.
Liquefied natural gas (LNG)
A product of natural gas which consists primarily of methane. Its properties are those of liquid methane, slightly modified by minor constituents. (CH4) and water steam (H2O) are put in a reactor. The process is called direct reduction of iron (DRI See Digital Research. process).
The only company has the facility, direct reduction plant, in the country is PT Krakatau Steel (PT KS). It has three unit of DRI plant namely HYL HYL Hydroxylysine
HYL Hyland Hall (University of Scranton)
HYL Hardcore Youth Legion I, HYL II and HYL III. The DRI technology came from Mexico. Ony two of the three units are in operation. The one is out of function.
The two sponge iron factories have a production capacity of 2.3 million tons of sponge iron a year. The first unit Hyl I started operation in 1979 using four modules of batch process with one module having 2 reactors. The unit has a production capacity of 1 million tons of sponge iron a year.
The second unit, Hyl III, started operation in 1994 using 2-shafts continuous process. This unit has an annual production capacity of 1.3 million tons. In addition to sponge iron, other basic materials are scrap and HBI (hot briquette Iron).
Sponge iron is easily oxidized oxidized
having been modified by the process of oxidation.
see absorbable cellulose. . It needs special care both in storage and transport.
Therefore, sponge iron plant is generally integrated with slab or billet factories. Billet and slab factories not integrated with sponge iron plant use scarp and HBI as the basic materials.
Flat Steel Products
Steel Making (Slab)
Steel slab is produced through the melting of sponge iron (80%) and steel scrap (20%) in an electric arc furnace An electric arc furnace (EAF) is a furnace that heats charged material by means of an electric arc.
Arc furnaces range in size from small units of approximately one ton capacity (used in foundries for producing cast iron products) up to about 400 ton units used for secondary (EAF EAF - Effort Adjustment Factor ) to turn out liquid steel, which is then poured into a continuous casting Continuous casting is a refinement of the casting process for the continuous, high-volume production of metal sections with a constant cross-section. It allows lower-cost production of metal sections with better quality, due to finer control through automation of the casting machine (CCM CCM Contemporary Christian Music
CCM Critical Care Medicine
CCM County College of Morris (New Jersey)
CCM Chama Cha Mapinduzi (political party, Tanzania)
CCM CORBA Component Model ) to produce raw steel.
Slab is used as the basic material for hot rolled steel coil and steel plates.
Slab has a width dimension of 1,000 mm, thickness of 200 mm, and length of 6,000 mm. It could weigh up to 30 tons per. The type produced by Krakatau Steel is low carbon.
Slab is processed into HRC and HR plate through hot strip machine (HSM (1) (Hierarchical Storage Management) The automatic movement of files from hard disk to slower, less-expensive storage media. The typical hierarchy is from magnetic disk to optical disc to tape. ) which reduces the thickness continuously into coil.
Steel plate is processed through reversing mills, which reduces the thickness of slab to turn out steel plates with a desired thickness.
The only slab producer in the country is PT Krakatau Steel. PT KS has two slab factories. The first is SSP-1, which uses the technology of MAN GHH GHH Galveston, Houston, and Henderson Railroad from Germany with an annual production capacity of 1 million tons. The second unit is SSP-2, which uses the technology of Voest Alpine ALPINE Antihypertensive Treatment and Lipid Profile in a North of Sweden Efficacy Evaluation (drug trial)
ALPINE Advanced Logistics Program Integration and Engineering from Austria and has an annual production capacity of 850,000 tons.
HRC/P (hot rolled coil/plate)
Hot rolled coils or plates are produced by using steel slab as the basic material. The thickness is set in a hot strip mill (HSM).
The slabs are first heated in a reheating Reheating
The addition of heat to steam of reduced pressure after the steam has given up some of its energy by expansion through the high-pressure stages of a turbine. furnace furnace, enclosed space for the burning of fuel. There are many kinds of furnaces, the type depending upon the fuel and the use to which the heat produced within it is put. Most familiar are the furnaces used in the heating of buildings. to be processed in sizing press and roughing mill. The steel material, then is made thinner in a hot roll finishing stand and hot skin pass mill. The steel sheets produce din DIN - Deutsche Institut fuer Normung. The German standardisation body, a member of ISO. the process are then put into a down coiler to be rolled into hot rolled coils.
Hot rolled coils have a grade based on chemical composition and mechanical properties varying depending on the end use.
Hot rolled plate is produced from steel slab. There are two processes of producing hot rolled plate in the country:
* The process used by PT KS Using hot strip mill tandem stand continually. PT KS has 6 units of stand.
* Process used by other producers (PT GDS GDS Global Distribution System
GDS Google Desktop Search (Google)
GDS Goodie Domain Service (Vienna University of Technology, Austria)
GDS Guards , PT JPS JPS Jewish Publication Society
JPS John Peter Smith (Hospital; Texas)
JPS Justice & Public Safety
JPS Jean Piaget Society
JPS Juvenile Polyposis Syndrome
JPS Joint Planning Staff and PT GRP GRP Group
GRP Group (file name extension)
GRP Glass Reinforced Plastic
GRP Gastrin-Releasing Peptide (biology)
GRP Gross Rating Point (advertising) ) Using reversing mill to reduce the thickness of slab with the process of 4 high stand mill.
Hot rolled plate has grades based on chemical composition and mechanical properties which vary depending on the end uses
The largest producer of HRC/plate in the country is PT Krakatau Steel with an annual production capacity of 1,850,000 tons of HRC and 150,000 tons of HR plates.
Hot rolled plates produced by PT KS, used mainly by ship building, steel structure and pipe manufacturing industries manufacturing industries npl → industrias fpl manufactureras
manufacturing industries npl → industries fpl de transformation
, have meet international standards such as American Petroleum Institute (API (Application Programming Interface) A language and message format used by an application program to communicate with the operating system or some other control program such as a database management system (DBMS) or communications protocol. ) especially for oil and gas industry, and American Society Testing Material (ASTM ASTM
American Society for Testing and Materials ), British Standard (BS), British Standard Europe Norm (BSEN BSEN Biological Systems Engineering ) and Japan Industrial Standard (JIS JIS Japanese Industrial Standard
JIS Jamaica Information Service
JIS Juggling Information Service
JIS Just in Sequence (automotive industry)
JIS Jakarta International School
JIS Joint Information System ).
PT Gunung Raja Paksi of the Gunung Garuda Group is a new comer com·er
1. One that arrives or comes: free food for all comers.
2. One showing promise of attaining success: a political comer.
Noun 1. in the steel plate industry. The company was established in 1998 and started operation in 2000. It uses second hand machines imported from Sweden. It has an annual production capacity of 500,000 tons consisting of 350,000 tons of HR plates and 150,000 tons of HRC. Most of its production of HRC is used as basic material to produce various steel materials for construction by the group.
The Gunawan Group with its two HR plate factories namely. PT Gunawan Dianjaya Steel and PT Jaya Pari Steel is the largest HR plate producer in term of production capacity.
PT Gunawan Dian Jaya, which has an annual capacity of 350,000 tons, is located on a 15 hectare hectare (hĕk`târ, –tär), abbr. ha, unit of area in the metric system, equal to 10,000 sq m, or about 2.47 acres. plot of land in Surabaya using U.S. technology. The company uses basic material entirely imported. Around 80% of its production are exported to Europe.
PT Jaya Pari Steel (JPS) which is also a sister company of GDS has been publicly listed in 1989. The integrated steel factory has an annual capacity of 100,000 tons.
Cold Rolled Coil/Sheet (CRC/S)
Cold rolled steel is an intermediate material, CRC/S is processed through cold rolled mill (CRM (Customer Relationship Management) An integrated information system that is used to plan, schedule and control the presales and postsales activities in an organization. ) using HRC as 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 with a thickness of 2 mm to 8 Mm, HRC is cleaned through continue pickling pickling,
n the process of cleansing from metallic surfaces the products of oxidation and other impurities by immersion in acid.
pickling line and then it is put into cold rolled mill, which serves as tandem for cold mill or reversing mill to reduce the thickness to 0,14 mm, After that it is cleaned in electrolytic e·lec·tro·lyt·ic
1. Of or relating to electrolysis.
2. Produced by electrolysis.
3. Of or relating to electrolytes.
e·lec cleaning line and made normal again in continuous annealing line or batch annealing furnace.
The next process is by putting it into temper mill The introduction to this article provides insufficient context for those unfamiliar with the subject matter.
Please help [ improve the introduction] to meet Wikipedia's layout standards. You can discuss the issue on the talk page. to become CRC/S, CRC/S has grade base don the chemical composition and mechanical properties which vary depending on the end product to be produced. See the following table that shows the size of CRC/S produced in the country.
The process shown in the diagram is used by PT Krakatau Steel and PT Essar. Another type of process to produce CRC is reversing mill such as used by PT Industri Baja Garuda, PT Little Giant and PT Intan Nasional Steel. In the reversing mill process, the basic material is thinner than one use din cold mill tandem.
Until now Indonesia has 5 companies producing CRC/S. The five companies are PT Krakatau Steel, PT Essar Dhanajaya, PT Little Giants, PT Baja Berlian Utama, and PT Intan Nasional Steel all with a total capacity of 1.61 million tons a year. CR mills are located in a number of areas in Banten, West Java, Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. and North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca. .
PT Krakatau Steel started producing CRC/S with an annual capacity of 850,000 tons, but the capacity was later reduced to 650,000 tons to suit its machines and production range.
From September 2002 to January 2003, PT Krakatau Steel has revamped its CR mill to reach original capacity of 850,000 tons per annum Per annum
PT KS is the largest producer of CRC/S in the country. PT KS has an integrated facility. The state steel maker could provide feedstock for its own CR mill. The main basic material for CRC/S is HRC. In fact PT KS is the only producer of HRC in the country. Other producers of CRC/S are either buying from PT KS or importing basic materials from various countries.
PT Essar Dhanajaya (ED) was established in 1996 as a joint venture between PT Garama Adipratama and Essar Group from India with an initial capacity of 200,000 MT. This company increased its capacity by 200,000 tons to 400,000 tons by mid 2003. Most HRC feedstock for PT ED is supplied by it's mother group company namely Essar Steels Limited, which is a large steel integrated plant in India.
Other smaller producers with an installed annual capacity of 100,000 tons include PT Little Giant from the Raja Besi Group and PT Baja Berlian Utama from the Industri Baja Garuda Group, These producers operate at less then 50% of capacity for their captive captive
said of naturally wild or feral animals kept in captivity for educational and scientific investigation with no attempt being made to domesticate them. consumption.
Little Giant produces CRS CRS Course
CRS Certified Residential Specialist (real estate certification)
CRS Central Reservation System
CRS Can't Remember Stuff (polite form)
CRS Cost Reduction Strategy
CRS Consumer Relations Specialist used as feedstock for steel pipe using for construction industry. This company has no facility for Pickling (Pickling Line), Baja Berlian Utama also has no facility for Annealing like BAF BAF British Athletics Federation (Batch Annealing Furnace) and Pickling facility and procure To cause something to happen; to find and obtain something or someone.
Procure refers to commencing a proceeding; bringing about a result; persuading, inducing, or causing a person to do a particular act; obtaining possession or control over an item; or making a person Hot Rolled Pickled pick·led
1. Preserved in or treated with pickle.
2. Slang Intoxicated; drunk.
1. (of food) preserved in a pickling liquid
2. Oiled Coils (HRPO HRPO Highland Road Park Observatory (Louisiana) ) to roll it as CRC for their captive consumption for Galvanizing galvanizing, process of coating a metal, usually iron or steel, with a protective covering of zinc. Galvanized iron is prepared either by dipping iron, from which rust has been removed by the action of sulfuric acid, into molten zinc so that a thin layer of the zinc lines. Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. of HRPO is sensitive to market availability and pricing.
Billet is used as the basic material for steel long products. Billet is produced through the same process used in the production of slabs. The difference lies in the size as set by the mold mold, name for certain multicellular organisms of the various classes of the kingdom Fungi, characteristically having bodies composed of a cottony mycelium. The colors of molds are caused by the spores, which are borne on the mycelium. . The sizes of billet have dimensions of 110x110mm, 120x120mm, 130x130mm, with maximum length of 12,000 mm.
The country has 18 billet plants in operation. Most of them are integrated with downstream factories like concrete reinforcing iron plant or wire rod plant. Among the companies operating integrated facility are PT. Krakatau Steel, PT. Gunung Gahapi, PT. Inti General Yaja Steel, and PT. Growth Sumatra.
In term of capacity, PT. Ispat Indo is the main player in billet industry with an annual production capacity of 700,000 tons. Its billet factory is integrated with wire rod plant which has an annual production capacity of 700,000 tons and concrete reinforcing iron plant which has an annual production capacity of 200,000 tons.
PT. Krakatau Steel (PT. KS) is second in capacity with an annual production capacity of 675,000 tons. Krakatau Steel has a wire rod plant with an annual production capacity of 450,000 tons. It also has concrete reinforcing iron plant under its subsidiary PT Krakatau Bajatama.
With an annual production capacity of 40,000 tons, PT. Pabrik Besi Baeawaja is the smallest billet producer.
Most wire rod factories such as those of Ispatindo and Krakatau Steel are integrated with billet plant. The process of producing wire rod and reinforcement bar is almost the same.
Before being rolled, billet is first heated in a reheating furnace. From the reheating furnace, the material is rolled until it has a desired diameter and the wire rod produced in the process is rolled in a rolling machine A rolling machine is a machine that is designed to roll either tobacco or cannabis into individual cigarettes or joints. To roll a cigarette (B) with cannabis, one must break up the smoking material (C) as well as remove any stems so they won't puncture the paper. .
Following is the configuration of wire rod making machine owned by PT Ispatindo with an annual production capacity of 700,000 tons.
Wire Rod Mill facilities in PT Ispatindo
* 85 tons/hr. walking hearth top fired Billet reheating furnace.
* Full continuous H-V compact cantilever ESS (1) (Electronic Switching System) A large-scale computer from Lucent used to route telephone calls in a telephone company office. The 5ESS is a Class 5 central office switch, and the 4ESS is a Class 4 tandem office switch. stands with independently driven D.C. motor.
* Super heavy duty high speed (100 M/sec) wire finishing block of 10 stands (BGV BGV Background Vocal (music)
BGV Bateau à Grande Vitesse (French: Fast Boat)
BGV Boost Glide Vehicle
BGV Below Ground Vault
BGV Blood Glucose Value
BGV Bassett Griffon Vendeen 200/160) with inter-stand cooling arrangements.
* Controlled water cooling Water cooling is a method of heat removal from components. As opposed to air cooling, water is used as the heat transmitter. Water cooling is commonly used for cooling internal combustion engines in automobiles and electrical generators. system (METEC) from Morgan with most modern facilities.
* 106 meter long Stelmor type roller cooling conveyor Conveyor
A horizontal, inclined, declined, or vertical machine for moving or transporting bulk materials, packages, or objects in a path predetermined by the design of the device and having points of loading and discharge fixed or selective. equipped with insulation insulation (ĭn'səlā`shən, ĭn'sy–), use of materials or devices to inhibit or prevent the conduction of heat or of electricity. hoods as well as air blowers for retarded re·tard·ed
1. Often Offensive Affected with mental retardation.
2. Occurring or developing later than desired or expected; delayed. and accelerated cooling of wire rod.
Coil collection system on Trestles This article is about the surf spots. For the table, see trestle table. For the type of bridge, see trestle.
Trestles is a collection of surf spots in San Onofre, CA near the Orange County border. having easy down device for good coil formation. With CEDA/DANIELI complete automation system for controlling rolling sequence. Automatic compacting, tying and weighing system.
The largest producers of wire rod in Indonesia is PT Ispatindo, which has an annual production capacity of 700,000 tons. Its factory is integrated with its billet in the upstream sector and wire factory in the downstream sector.
In addition to wire rod, PT Ispatindo produces concrete reinforcing iron with an annual production capacity 200,000 tons. The company manufactures a wide range of low and high carbon grades of billets, wire rods and bars using approximately 65% of scrap and 35% of DRI/Pig Iron. The mix varies according to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the grade of steel produced.
PT. Ispat Indo has a strong foothold foot·hold
1. A place providing support for the foot in climbing or standing.
2. A firm or secure position that provides a base for further advancement.
1. in neighboring neigh·bor
1. One who lives near or next to another.
2. A person, place, or thing adjacent to or located near another.
3. A fellow human.
4. Used as a form of familiar address.
v. markets and is strategically well positioned for trading throughout the world. It sells approximately 70% of its products on the domestic market and about 30% in export markets of the fast growing Asia-Pacific region. It is the largest wire rod producer in Indonesia with the highest market share. Ispat Indo is known for shortest delivery period with highly flexible product mix at the most competitive prices.
PT. Ispat Wire Products (IWP IWP International Writing Program (University of Iowa)
IWP Institute of World Politics
IWP Ice Water Path
IWP Immigrant Women Program
IWP Iraq Water Project
IWP Idaho White Pine (lumber) ) is a wholly owned subsidiary Wholly Owned Subsidiary
A subsidiary whose parent company owns 100% of its common stock.
In other words, the parent company owns the company outright and there are no minority owners. of PT. Ispat Indo and is engaged in downstream activities like wire drawing, nail making, production of straight bar, etc.. IWP primarily consumes wire rod from Ispat Indo for finished products to be sold domestically as well as exports. Capacity--Wire drawing and nail making--36,000 MT per year, Straight bar--75,000 MT per year.
The second largest wire rod producer is PT Krakatau Steel with an annual production capacity 450,000 tons. PT Ispatindo and PT Krakatau Steel dominate steel industry. Therefore, if one of the two is facing trouble or suspends operation for some trouble or being under maintenance, supply of wire rod often falls short 1 of requirement in the market.
Reinforcement bars or concrete reinforcing iron is produced from billet or 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. with the process of hot rolling. Most reinforcement bar factories are integrated with billet factory. The process of producing reinforcement bars is almost the same as that of producing wire rod.
Following are examples of machines owned by PT Ispatindo to produce reinforcement bar with an annual production capacity of 200,000 tons.
Bar Mill facilities in PT Ispatindo:
* 35 tons/hr. pusher type billet reheating furnace.
* 2 nos. 3 high roughing stands and 10 nos. 2 high intermediate stand
* No twist Block of 8 stands--60 m / sec.
* Garret Coiler.
* Cooling Bed for straight Bars/Turn forming for coils.
There are 32 reinforcement bar factories in Indonesia with total annual capacity is around 3.19 million tons, but not all of them are in operation.
There are two types of steel section (angle and profile iron) by size namely light and heavy profile iron. Light profile iron is angle or profile iron smaller than 80 mm. Heavy profile iron is one larger than 80 mm in size. The steel products are used widely in property, bridge, tower and electric transmission pole construction pole construction
Method of building that dates back to the Stone Age. Excavations in Europe show rings of stones that may have braced huts made of wooden poles or weighted down the walls of tents made of animal skins supported by central poles. .
The country's installed capacity of angle and other types of profile iron is 1.26 million tons a year with 25 producers. The types of profile iron produced by the companies include angle iron, profile L, U, I and H. The largest producer is PT Gunung Garuda with an annual production capacity of 350,000 tons of heavy profile iron of more than 80 mm.
Production capacity almost stagnant stagnant /stag·nant/ (stag´nant)
1. motionless; not flowing or moving.
2. inactive; not developing or progressing.
Indonesia's steel industry has not expanded significantly in the past 10 years. The production capacity for various types of steel products has been almost unchanged. Increase has been recorded only in the capacity of a few types of the products, but there is also a decline in the production capacity of certain products.
The only producer of sponge iron and slabs has so far been PT Krakatau Steel and the production capacity has remained the same. A decline is even recorded in production capacity for billet as some producers have stopped operation. Increase in production capacity is recorded mainly for steel bars such as reinforcement bar and steel wire rod. The capacity for concrete reinforcing iron doubled to 4.4 million tons from 2.2 million tons a year and the capacity for wire rod rose from 865,000 tons to more than 1 million tons annually. The increase in capacity was recorded mainly in 1996-1997 before the crisis hit the country.
A faster growth was recorded for GI Sheet industry with capacity rising from 508,000 tons in 1995 to 1.2 million tons in 2005. The increase in production capacity was recorded in 1995-1996 with expansion such as by BlueScope Indonesia, formerly named Bernama BHP Steel and construction of new factories by PT Bisma Narendra and PT Essar Dananjaya.
Major Players in Steel Industries
PT Krakatau Steel
PT Krakatau Steel is the only company having integrated steel factory in Indonesia. PT KS has factories including 2 units of sponge iron factory, 2 units of steel slab factory, 1 unit of steel billet factory, 1 unit of hot rolled coil factory, 1 unit of cold rolled coil factory and 1 unit of wire rod factory.
* Sponge iron factory (Direct Reduction Plant) with annual production capacity of 2.3 million tons of sponge iron:
- HYL I : 1 million tons
- HYL III : 1.3 million tons
* Slab Steel Plant with an annual production capacity of 1.8 million tons.:
- SSP (1) (Service Switching Point) The local exchange node in an SS7 telephone network. The SSP can be part of the voice switch or in a separate computer connected to it. I : 1 million tons
- SSP II : 800,000 tons
* Billet Steel Plant with an annual production capacity of 675,000 tons.
* Hot Strip Mill with an annual production capacity 2 million tons.
* Cold Rolling Mill with an annual production capacity of 650,000 tons.
* Wire Rod Mill with an annual production capacity of 450,000 tons.
PT Krakatau Steel also has subsidiaries operating in steel industry namely PT Krakatau Bajatama, which produces concrete reinforcing iron, PT KHI khi
Variant of chi1. Pipe Industries producing spiral welded pipes, PT Cigading Habeam producing heavy profile iron. Krakatau Steel also has stakes in a number of other subsidiaries.
Krakatau Steel dominates production of steel sheets mainly HRC and CRC and steel bar mainly wire rod.
Ispatindo is the main player in wire rod industry with an annual production capacity of 700,000 tons.
PT Ispatindo was established in 1976 with annual capacity of its rolling mill of 60,000 tons.
Ispatindo has a billet factory with an annual production capacity of 700,000 tons, a wire rod factory with an annual capacity of 700,000 tons and a concrete reinforcing iron plant with an annual capacity of 200,000 tons.
PT Ispatindo also has a subsidiary namely PT PT. Ispat Wire Products (IWP) which operates in wire rod industry producing wire, nail, straight bar and other products of wire rods. Its has an annual capacity to produce 36,000 tons of wire and nail and 75,000 tons of straight bar.
PT Ispatindo planned to build a sponge iron plant before the crisis but the plan failed to come to reality because of the crisis in 1997/1998.
Gunung Garuda is the largest producer of heavy profile iron. Most steel factories producing profile iron use steel plate as the basic material. PT Gunung Garuda produces heavy profile iron from billet rolled into profile iron. With production capacity of 350,000 tons, Gunung Garuda dominates the market of heavy profile iron.
Gunung Garuda also has a Hot rolled Coil/Plate factory with an annual production capacity 500,000 tons. The Gunung Garuda group, therefore, does not only sell steel building materials Building materials used in the construction industry to create .
These categories of materials and products are used by and construction project managers to specify the materials and methods used for . but also offer the concept of Pre-Engineered Building (PEB PEB Physical Evaluation Board
PEB Presidential Emergency Board
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PEB Professional Engineers Board (Singapore)
PEB Pre-Engineered Building
PEB Personal Electronic Ballot
PEB Performance Evaluation Board ) service, which is steel construction prepared by its factory ready for fixing. This concept is more efficient in the use of steel as factory produces the steel frame according to requirement that consumers have no steel wasted.
The Essar group is a producer of steel from India building CC factory in Indonesia in 1997 and is the only CRC producer beside PT KS. It uses the rolling process. Other CRC producers use reversing mill.
Essar expanded rapidly after it started operation in 1997 with an annual production capacity of 200,000 tons, Later Essar expanded its production capacity to 400,000 tons. PT Essar Dananjaya also has built a GI sheet factory with an annual 150,000 tons.
Jakarta Cakra Tunggal
The country has 32 companies producing concrete reinforcing iron with a total production capacity of 3.19 million tons a year. Among the companies are PT Jakarta Cakra Tunggal, which is the largest with an annual production capacity of 360,000 tons. The subsidiary of the Argo Pantes also has another factory producing concrete reinforcing iron under PT Budi Dharma dharma (där`mə). In Hinduism, dharma is the doctrine of the religious and moral rights and duties of each individual; it generally refers to religious duty, but may also mean social order, right conduct, or simply virtue. Steel (PT BDS BDS
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BDS ) with an annual production capacity of 160,000 tons.
The capacity utilization of the country's steel industry is relatively low in the past 5 years especially billet and concrete reinforcing iron industries. However, the two industries recorded a fast growth in production. Billet production grew by 17.2% annually and production of concrete reinforcing iron increased by 16.7 %.
In 1998, production of concrete reinforcing iron totaled 2.3 million tons, down to 1.1 million tons in 2001. In 2005, the production surged to 2 million tons with the revival of the property industry.
The country's production sheet steel both HRC and CRC has been relatively stable over the past several years.
Production of sponge iron of PT KS has declined sharply in the past several years--down from 1.7 million tons in 2000 to 1.4 million tons in 2004 and to 1.2 million tons in 2005.
Problem faced by PT KS at present is shortage in gas supply from Pertamina. In the past several years KS received only 80%% of its gas requirement. The supply is feared to decline further as Pertamina has also to supply gas to fertilizer fertilizer, organic or inorganic material containing one or more of the nutrients—mainly nitrogen, phosphorus, and potassium, and other essential elements required for plant growth. companies.
The country's production slab from the only producer PT KS has been stable at around 1.2 million--1.3 million tons. The slab production of KS very much depends on production of sponge iron. The entire slab production of the company has been used for its slab production unit. Other consumers of sponge iron, therefore has to rely on imports.
PT Krakatau Steel has several times planning to expand its capacity in the upstream sector of its industry. In 1994, when Habibie was the research ministry and head of Strategic Industry Agency PT Krakatau Steel planned to build second generation steel mill. Feasibility study The analysis of a problem to determine if it can be solved effectively. The operational (will it work?), economical (costs and benefits) and technical (can it be built?) aspects are part of the study. Results of the study determine whether the solution should be implemented. on the plan was already carried out by UNIDO, and JICA. POSCO of South Korea and BHP from Australia had indicated interest in building the project, The project, however, was shelved or cancelled.
Early, 2006, PT Krakatau Steel planned again to build upstream steel industry. It planned to build thin slab flat rolling mill. The project has attracted investors from Italy, South Korea and other countries. However, implementation of the project is now in big question after Vice President Jusuf Kalla said the project to be built in Cilegon is not feasible as it has strong support from the availability of basic material, and guarantee in energy supply. The availability of basic materials, therefore is vital to create a strong steel industry.
Kalla, therefore, suggested development of upstream industry in South Kalimantan where large reserve of iron ore has been found and energy supply is more guaranteed than if the facility is built in Java. The problem with South Kalimantan, however, is inadequate infrastructure that needs large additional investment.
Implementation of the project, however, will likely remain in the pipeline for a longer time to come. The plan to build it in Cilegom has been virtually scrapped and the idea of moving it to South Kalimantan will need further mulling over. PT KS has to start calculation all over again from the beginning.
HRC and CRC
Krakatau Steel is the only producer of iron slab in the country. Slabs are used as a basic material for HRC/Plate. HRC produced by Krakatau Steel is used mainly to feed its CRC/S plant.
Cold rolling mill needs HRC with a thickness of 1.8--3 mm as a basic material. HRC production of PT KS is only 700,000 tons of one with a thickness of less than 3 mm barley barley, annual cereal plant (Hordeum vulgare and sometimes other species) of the family Gramineae (grass family), cultivated by humans probably as early as any cereal. enough to meet its requirement of 650,000 tons annually.
KS, therefore, could not supply three other CRC producers in the country with HRC.
The three other consumers of HRC needs around 300,000 tons of that material a year that have to be imported. The import duty on HRC is %.
Billet and reinforcement bars
The country's production of billet declined with the rising production cost as a result of the oil fuel price hike. Meanwhile, billet producers in the country are no longer efficient as they use old machines aging from 20 to 30 years. Local product of billet, therefore, could not meet imported products in market competition. In fact, many billet factories have stopped operation.
In 2004-2005, here was a surge in the production of billet with the revival of the construction industry and property sector in the country. The increase in the prices of wooden building material has contributed to rising demand for steel building materials.
Concrete reinforcing iron industry also grew fast during that period. In 2005, the country's production of concrete reinforcing iron totaled 2 million tons nearly reaching the peak production of 2.2 million tons in before the crisis hit the country in 1997.
The government has sought to harmonize import duty tariffs on steel products but the business sector still complained as the new tariffs failed to prevent imports. The import duty of 0% on billet was blamed for the in-competitiveness of local products. Many factories chose to stop producing billet instead they import the material although the factories are integrated facilities having billet and concrete reinforcing iron production plants.
HRC with thickness of less than 3mm could be produced locally only by Krakatau Steel and it its production is used to feed only its CRM factory that other CRC producers have to rely on import for HRC. The import duty of 5% on HRC makes it difficult for locally produced CRC to compete in the market against PT KS's CRC and imported CRC.
Currently China is having surplus of HRC/Plate with a thickness of more than 3 mm for general construction and for pipe basic material as well as HRC with a thickness of 3 mm or less to be used as basic material for CRC, which is to be as the basic material for GI sheet.
China, therefore, offers its products in cheaper price. As a result PT KS suffer in market competition in the country. PT KS, therefore, filed an anti dumping petition against imported products from China. However, move to impose a high import duty on HRC is opposed by local producers of CRC and GI Sheet.
The change in the map of world trade as a result of fall in demand from China, which in fact has even become a net exporter will necessitate ne·ces·si·tate
tr.v. ne·ces·si·tat·ed, ne·ces·si·tat·ing, ne·ces·si·tates
1. To make necessary or unavoidable.
2. To require or compel. protection for local products. Harmonization of tariff could not be coped with by considering only the interest of certain sector of the industry but it should be based on the national interest.
With the absence of a grand strategy of the government in the development of the manufacturing sector, import duty will continue to trigger domestic controversy. The government has no strong legal argument when slashing slash·ing
1. Bitingly critical or satiric: slashing wit.
2. Dashing; pelting: a slashing hailstorm.
3. or raising import duties.
In countries which have good grand design for their industries, import duties are part of their industrialization industrialization
Process of converting to a socioeconomic order in which industry is dominant. The changes that took place in Britain during the Industrial Revolution of the late 18th and 19th century led the way for the early industrializing nations of western Europe and strategy as in determining an import duty will always draw opposition and support. Without a clear vision of the government that could be accepted by all, the controversy will be more intense.
A fast growth was recorded in imports of steel in 2004 and 2005 to follow the strong growth of the construction and property sectors, which use much both long and flat steel products. Meanwhile, China had a large surplus of HRC that it disposed of part of the surplus in Indonesian market with cheaper prices.
In general steel imports have increased affecting the local producers notably, which has long dominated the domestic market.
Exports up boosted by good prices
Boosted by good prices in international market, a number of steel factories increased exports in 2004 and 2005. Exported products include HRC/P. In 203, HRC/P exports totaled 148,000 tons valued at US$ 49 million. In 2004, exports shot up to 295,000 tons valued at US$ 148 million. In 2005, exports rose again to 354,000 tons valued at US$ 216 million.
Exports of steel bars have fluctuated. For example, exports of wire rod totaled 274,000 tons in 2001, down to 168,000 tons in 2003, before rising to 265,000 tons in 2004 See the following table.
Demands for steel in Indonesia have generally increased in the past 5 years, notably in 2004 and 2005 when the construction and automotive sectors recorded strong growth. Demand for steel bars and steel sheets grew fast.
The increased in demand was also boosted by declining price of steel in 2005 after China cut imports. China even started exporting HRC flooding the Indonesian market in 2005.
In 2006, however, demand fell again with the surge in the prices of oil fuels (BBM BBM Brokeback Mountain (book/movie)
BBM Bureau of Broadcast Measurement
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1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.
2. of the Indonesian people resulting in a decline in demand for steel products such as concrete reinforcing iron in the first half of 2006.
The prices of HRC began to scale up in 2001 notably late 2004 and early 2005 when demand from China was strong with the brisk Brisk as a proper name may refer to:
The price of HRC peaked at US$ 625 per ton in September 2004, when China imported needed large supply of the materials. In mid 2005, the price of steel began to decline as China began to post surplus after the operation of a number of new large steel factories. Supply began to exceed requirement. In 2005, the price of HRC fell to US$ 553 per ton.
The prices of HRC generally is used to serve as a reference for the prices of steel in international market. In 2005, the prices of HRC in Germany were higher than in China and in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. .
Early, 2006, the price of HRC began to climb again despite China's large surplus.
The increase in the HRC prices was caused by a number of factors such as scarcity Scarcity
The basic economic problem which arises from people having unlimited wants while there are and always will be limited resources. Because of scarcity, various economic decisions must be made to allocate resources efficiently. of basic material supply in the form of slab in the world market as a result of damage of factories owned by CSN CSN Crosby, Stills, and Nash (band)
CSN Centrala studiestödsnämnden (Swedish: state education grant and loan program)
CSN Confédération des Syndicats Nationaux (French) (a large steel maker in Brazil) and Azovstal (in eastern Europe Eastern Europe
The countries of eastern Europe, especially those that were allied with the USSR in the Warsaw Pact, which was established in 1955 and dissolved in 1991. ).
The prices of steel on the domestic market generally follow the prices set by PT Krakatau Steel, which is normally based on the international prices.
The average prices of hot-rolled-coil/HRC), CRC and Wire rod in the local market tend to decline now after peaking early 2005. See the following table.
The prices of HRC are also used as a reference in international market. The price of CRC is normally higher US$ 100 per ton. The following table shows estimates of production cost when the prices of industrial fuel surged to Rp 5,800 a liter liter, abbr. l, unit of volume in the metric system, defined since 1964 as equal to 0.001 cubic meters, or 1 cubic decimeter. A cube that has each of its edges equal to 10 centimeters has a volume of 1 liter. The liter is equal to 1.057 liquid quarts, 0. late 2005.
Based on the estimates the production cost for a ton of HRC was Rp 4,893,000 and the selling price of that material paid by CRC producers was Rp 5,498,000 a ton. The production cost for CRC, therefore, was Rp 5,881,000 a ton--Rp 988,000 or US$ 105 higher than that of HRC.
The fact, however, is that the price difference between the imported products of HRC and CRC is not as much as US$ 100. Large producers in China often sell CRC at a price margin of much less than US$100 a ton. Therefore, it is difficult for local products of CRC with imported basic material to compete with Chinese products.
New Investment and Expansion
From 2005 through June 2006, there were a number of companies planning to build new steel factories or expanding heir factories. Investors are mainly interested in billet production, and downstream sector producing wire rod and concrete reinforcing iron.
The interest in producing concrete reinforcing iron and wire rod followed the revival of the construction sector in 2004. Most investors indicate interest in concrete reinforcing iron industry as it will need smaller investment. Investment in HRC and CRC is much larger.
There is little interest shown in venturing in upstream sector because of the large investment needed. Other than PT Krakatau Steel, long planning to build factory in the upstream sector is the Bakrie Group, which is known to have large factories in the downstream sector producing steel pipes. The company group plans to build integrated factories to produce HRC and HRP, which are needed in steel pipe industry. The plan, however, is still in the early stage and the project is to have an annual production capacity of 1 million tons. No further details have been available yet.
Development of Upstream Steel Industry
Twenty years TWENTY YEARS. The lapse of twenty years raises a presumption of certain facts, and after such a time, the party against whom the presumption has been raised, will be required to prove a negative to establish his rights.
2. ago Indonesia was far ahead other Asean countries in steel industry. However, now Thailand and Malaysia have left the country behinds. In 1994, Indonesia's crude steel production totaled 3.2 million tons as against Malaysia's 2.05 million tons and Thailand's 1.46 million tons. In 2003, Malaysia already led with a production of 3.96 million tons of crude steel as against Indonesia's 2.04 million tons. In the same year Thailand also increased its production to 3.57 million tons.
Noteworthy is in hot rolled steel industry. In 1994 Thailand produced only 2.11 million tons of hot rolled steel, surging to 7.49 million tons in 2003. Meanwhile, Indonesia's production of hot rolled steel totaled only 3.71 million tons in 2003 down from 4.29 million tons in 1994.
The fast growth of the steel industry in Thailand contributes to rapid expansion of its automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. especially its hot rolled steel industry. Thailand, even Malaysia, already left Indonesia behind in automotive industry although Indonesia started 20 years earlier and become the pioneer in automotive industry in southeast Asia.
Conflicting interests have slowed expansion of the country's integrated steel industry. The plan to build a second generation steel mill with a production capacity of 4 million tons a year failed because of conflicting interests between investors close to those in power. At that time, the planned to involve partners from South Korea, Australia, and Germany. The project, therefore was split into small ones that could not compete in the world market.
Similarly, a plan to build one with tender to be held this year, has been abandoned after Vice President Jusuf Kalla suggested construction of the new facility should be in area close to the source of basic material in South Kalimantan. Originally PT Krakatau Steel planned to build the facility in its complex in Cilegon, Banten.
The suggestion by Kalla has good reason but it needs studies from the beginning to determine the strength of the iron ore reserve in South Kalimantan to ensure that it is feasible and enough to warrant construction of an expensive project. The new project will be more expensive as it will need construction of new infrastructure, which is already available in Cilegon.
The government will need to offer incentives to attract investors. PT Krakatau Steel could not longer be entirely relied on to build a new steel project in large scale such as one to be built in South Kalimantan. Facility provided so far for PT KS proved to be not effective in driving the country's steel industry after so many years.
A new body might be needed to handle development of steel industry to provide a rival for PT KS to prevent domination by one large company and create a healthy competition in the market. PT KS has long enjoyed monopoly and has no initiative to expand itself.
Pipe factories using HRC from PT KS have often complained about prices being too high, delivery being set by PT KS. Consumers were more often forced to accept the terms set by PT KS as imports are not easy.
Demand for steel bars including billet, wire rod and concrete reinforcing iron, is forecast to rise in the next five years based on the trend in the past five years. Demand for steel bars will follow the trend of the construction industry, which is expected to grow in the coming years. In the wake of the monetary crisis in 1997/1998, the construction industry shrank resulting in a decline in demand for concrete reinforcing iron and wire rod. Demand for the two steel materials began to scale up in 2001 and the trend continued in the following years. In 2004 and 2005 demand for steel bars including concrete reinforcing iron and wire rod already reached the pre crisis level. The rising trend is expected to continue in the coming years.
Demands for billet, concrete reinforcing iron and wire rod in the pasty five years have increased by 16%, 17% and 14% annually respectively. In the coming five years the demands are expected to grow more or less by the same rates. Therefore, in 2010, demand for billet is is predicted to reach 6.20 million tons, demand for concrete reinforcing iron/light profile is estimated to total 4.46 million tons, and demand for wire rod 1.75 million tons.
Demand for steel plates is also predicted to rise although not as fast as concrete reinforcing iron, as the consumers of steel plate mainly the manufacturing sector will not grow as fast as the construction sector. In the past five years, demands for slab, HRC/Plate, and CRC/S have increased respectively by 6%, 6%, and 7% annually. It is expected that demands in the coming five years will grow more or less by the same rates. Therefore, in 2010, slab requirement will reach 2.42 million tons, HRC/Plate requirement 3.33 million tons and CRC/S requirement 1.91 million tons.
Therefore, the existing production capacity will not longer be sufficient to meet the domestic requirement. Without capacity expansion, the country will have to relay on import for the deficit in supply. New investment, therefore, is needed in the upstream sector to support expansion of 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 of the steel industry.
Conclusion and recommendation
* Indonesia's steel industry, which has been developed since 1970's has been sluggish and lagging Lagging
Strategy used by a firm to stall payments, normally in response to exchange rate projections. behind steel industry in other Asean countries such as Malaysia and Thailand, which began developing the industry only in the 1990s.
* Indonesia's steel industry has been dependent much on the upstream steel industry of PT Krakatau Steel especially for steel plates.
* In the past 10 years--1995-2005, the country's steel industry has been sluggish especially its upstream sector. For example, the production capacity for sponge iron of Krakatau Steel has not expanded after 30 years.
* Capacity expansion has been recorded only in the downstream sector such as concrete reinforcing iron, steel pipe and GI sheet industries.
* The main problem faced by the country's steel industry is heavy dependence on import for basic materials. Giant and integrated steel makers have dominated the market of steel basic materials, therefore, they tend to dictate the prices. The availability of supply and prices are determined by the strategy of the steel giants. Producers in Indonesia, therefore, more often could not compete well in the market.
* Steel demand in Indonesia is still relatively small compared with in other Asian countries. If the country's economy will expand by 6% annually as predicted by the government, demand for steel is expected to grow fast in the coming five years.
* It is time for Indonesia to build upstream steel industry to feed the country's down stream industry in the next five to en years.
* Another upstream industry as large as PT Krakatau Steel is needed to prevent strong domination by the sate owned steel maker and as domination tends to create unhealthy competition in the market.
* The plan to build a factory to produce steel pellet in South Kalimantan could be a breakthrough in the efforts to build a strong foundation of the iron ore reserve in that province.
Table--1 Profile of major HRC/Plate producers Production capacity No. Company Location Coil Plate (TPY) 1, Gunung Raja Cibitung 150,000 350,000 500,000 Paksi 2, Krakatau Steel Cilegon 1,850,000 150,000 2,000,000 3, Gunawan Surabaya -- 350,000 350,000 Dianjaya Steel 4, Jayapari Steel Surabaya -- 100,000 100,000 Total capacity 2,000,000 950,000 2,950,000 HR/Plate SourceData Table--2 Profile of major CR/Sheet producers No. Company Location Production capacity (TPY) 1 Essar Dhananjaya Bekasi 400,000 2 Industri Baja Garuda Medan 150,000 3 Intan Nasional Steel Medan 60,000 4 Krakatau Steel Cilegon 850,000 5 Little Giant Steel Semarang 150,000 Total capacity CR/Sheet 1,610,000 Source: Data Consult Table--3 Producers of billet and production capacity, 2005 Installed cap. Companies (000 tons/y) Growth Sumatera Ind. Ltd, PT 330 Gunung Gahapi Sakti, PT 300 Gunung Garuda, PT (billet) 400 Hanil Jaya Metal Works, PT 160 Inter World Steel Mill, PT 250 Inti General Yaja Steel, PT 160 Ispatindo, PT 700 Jakarta Cakratunggal Steel, PT 420 Jakarta Steel Megahutama, PT 300 Jatim Taman Steel, PT 200 Krakatau Steel, PT 675 Pabrik Besi Barawaja, PT 40 Pangeran Karang Murni, PT 400 Pulogadung Steel, PT 80 Toyogiri Iron & Steel, PT 120 Kesa Indotama, PT Sanex Steel Indonesia, PT Bromo Steel, PT Total 4,535 Source: Data Consult Table--4 Profile of major wire rod producers Production capacity No. Company Location (TPY) 1 Krakatau Steel Cilegon 450,000 2 Gunung Garuda Jakarta 60,000 3 The Master Steel Jakarta 250,000 4 Golgon Medan 25,000 5 Growth Sumatra Industry Ltd. Medan 45,000 6 Gunung Gahapi Sakti Medan 100,000 7 Intan Nasional Medan 45,000 8 Hanil Jaya Metal Works Surabaya 100,000 9 Ispat Indo Surabaya 700,000 Total capacity wire rod 1,775,000 Source: Data Consult Table--5 Profile of major producers of reinforcement bar No. Company Location Production capacity (tons/y) 1 Jakarta Cakra Tunggal Jakarta 360,000 2 Master Steel Jakarta 250,000 3 Inter World Steel Tangerang 240,000 4 Ispatindo Sidoarjo 200,000 5 Hanil Jaya Sidoarjo 196,000 6 Krakatau Wajatama Cilegon 150,000 Total capacity of 3,190,000 rebars producers Source: Data Consult Table--6 Profile of major producers of steel section Production capacity No.Company Location (tons/y) 1 Gunung Garuda Bekasi 350,000 2 Inter World teel Tangerang 150,000 3 Krakatau Wajatama Cilegon 150,000 4 Alim Ampuh Jaya Steel Sidoarjo 110,000 5 Cigading Habeam Center Cilegon 100,000 6 Hanil Jaya Surabaya 80,000 Total production capacity of 1,260,000 angle and profile iron Source: Data Consult Table--7 Production capacity of steel industry, 1995 & 2005 (000 tons/year) Production Number of Types of Capacity Capacity companies No. steel product Prod. 1995 2005 2005 1 Sponge iron 2,300 2,300 1 2 Slab 1,850 1,850 1 3 Billet 4,961 4,785 18 4 Concrete iron/light 2,219 4,400 32 profile iron 5 Wire rod 865 1,015 9 6 Hot Rolled Coil (HRC) 2,200 2 HR Plate 920 4 Total HRC/Plate 2,640 3,120 4 7 Straight/spiral 1,386 2,243 23 welded pipes 8 CRC/Sheet 1,296 1,350 5 9 BJLS/colored 508 1,200 17 10 Tin Plate 130 130 1 Source: Data Consult Table--8 Steel production and capacity utilization, 2001-2005 (000' tons) Types of steel product 2001 2002 2003 2004 Sponge iron 1,516 1,478 1,171 1,367 Steel slab 1,217 1,292 1,002 1,190 Billet 952 976 1,042 1,199 Concrete 1,113 1,141 1,212 1,424 reinforcing iron/light profile Wire rod 610 625 578 651 HRC/Plate 1,935 2,032 2,190 2,442 CRC/Sheet 745 755 680 754 Types of Capacity steel utilization Average product 2005 *) 2005 (%) growth Sponge iron 1,327 57.7 -2.50% Steel slab 1,387 75 4.80% Billet 1,730 36.2 17.20% Concrete 2,002 45.5 reinforcing iron/light profile 16.70% Wire rod 602 59.3 0.00% HRC/Plate 2,143 68.9 2.70% CRC/Sheet 722 53.5 -0.50% Note: *) provisional Source: Ministry of industry, Data Consult Table--9 Production of billet and reinforcement bars/light profile by producers, 2003-2005 (Tons) Companies 2003 2004 2005 Production of billet Growth Sumatera Ind. Ltd, PT 64,301 62,436 63,369 Gunung Gahapi Sakti, PT 134,000 141,055 145,300 Gunung Garuda, PT (billet) 60,700 85,100 43,000 Gunung Garuda, PT (bloom) 90,100 110,250 145,200 Hanil Jaya Metal Works, PT 123,949 121,007 138,417 Inter World Steel Mill, PT 150,242 164,870 83,612 Inti General Yaja Steel, PT 36,629 40,250 53,561 Ispatindo, PT 583,509 524,474 536,788 Jakarta Cakratunggal Steel, PT 198,000 204,000 223,400 Jatim Taman Steel, PT 84,074 93,300 71,660 Krakatau Steel, PT 326,056 386,500 356,300 Pangeran Karang Murni, PT 275,120 289,425 236,182 Production of Reinforcement bars/light profile by producers PT. Gunung Gahapi Sakti 108,662 82,325 95,494 PT. Krakatau Wajatama 103,097 174,545 166,233 PT. Budidharma Jakarta - - 48,750 PT. Jakarta Cakra Tunggal 156,806 161,558 176,922 PT. The Master Steel 262,764 231,685 335,596 PT. Pulogadung Steel 45,500 37,690 53,965 PT. Toyogiri & Steel 108,000 93,600 108,000 PT. Jakarta Kyoei Steel 117,000 114,000 115,000 PT. Jatim Taman Steel 63,055 56,205 72,664 PT. Hanil Jaya Metal Works 120,706 120,117 132,917 PT. Inter World Steel Mill 181,947 198,383 119,124 Indonesia PT. Gunung Garuda 32,500 47,100 40,425 Source: Data Consult Table--10 Import duties on flat steel products, 2005 Import Products duty (%) Upstream products Iron ore 0 Sponge 0 Scrap 0 Pellet 0 Ferro Alloy 0 Slab 0 Slab Stainless 0 Bloom/Ingot 0 Billet 0 Flat Products Intermediate products HRC 5 & 7.5 Plate 5 & 7.5 HRC Stainless 0 CRC 10 & 12.5 CRC Stainless 10 Down Stream products Tin Free Steel 15 Tinplate 15 Other coated Steel 15 Light profile 20 Straight/spiral 13 welded pipe Heavy profile 20 Long Products Intermediate Products Seamless pipes 5 Wire Rod 5 Pc. Strand 10 & 15 Pc. Wire 10 & 15 Pc. Bar 10 & 15 Free Cutting wire 10 & 15 Spokes Wire 10 & 15 Bead wire 10 & 15 Spring Wire 10 & 15 Others 10 & 15 Down stream products Heavy profile 20 Seamless pipes/Finished 15 Seamless pipe Steel Cord 20 Spiral spring 15 Cord 15 & 20 Nail 15 & 20 Wire net/fence 15 Chain and parts 15 & 20 Nut and bolt 15 & 20 Concrete reinforcing 15 & 20 iron/light profile Source: Finance ministry, industry ministry, Data Consult Table--11 Imports of steel (Tons) (000'US$) Description 2001 2002 2003 Total steel 6,119,052 6,439,896 6,024,606 1,547,041 1,695,143 1,738,433 1. Based iron/ 3,065,665 2,900,725 2,688,990 steel 256,722 238,614 240,850 Pellet 1,291,535 1,318,129 1,308,810 58,965 53,421 51,541 Sponge/ Pig Iron 298,007 184,720 319,284 37,982 24,454 41,801 Scrap 1,438,338 1,318,025 966,458 139,350 131,809 111,192 Ferro Alloy 37,784 79,852 94,437 20,425 28,930 36,316 2. Crude steel 1,089,251 1,295,902 1,148,630 190,806 227,925 266,041 Slab 304,603 268,586 271,855 52,284 49,611 61,672 Bloom, Billet and 783,627 1,026,586 876,252 Ingot 187,571 177,412 203,798 3. Flat steel 1,316,124 1,533,971 1,500,461 product 591,792 688,663 718,173 Total HRC/P 730,816 804,236 890,537 176,802 242,114 810,710 HRC 476,436 506,128 603,686 128,480 145,169 207,024 HRP 125,901 152,940 79,827 48,322 62,809 36,449 Total CRC/S 448,428 664,408 654,101 191,286 576,132 582,854 CRC 264,008 413,906 405,531 100,777 162,227 177,323 CRS 83,644 88,275 71,248 42,036 44,249 36,614 Zinc plated iron 100,049 64,618 78,787 sheet 36,524 30,013 43,514 Tin plated iron 89,933 106,523 70,756 sheet 52,123 59,846 44,304 Other coated flat 62,888 69,052 71,015 steel 41,917 44,907 50,395 4. Iron/steel bar 522,197 585,076 542,744 products 362,227 380,149 355,945 Wire rod 206,704 229,680 248,862 88,751 91,123 112,190 Steel wire 44,844 68,626 63,624 27,467 32,168 29,678 Stranded/woven 18,251 22,059 23,619 wire 19,639 21,506 24,133 Concrete 912 775 729 reinforcing iron 295 283 325 Heavy profile 43,293 36,805 15,383 15,393 13,298 6,590 Light profile 19,824 20,187 22,836 13,762 9,462 13,465 Trend (%) Description 2004 2005 2001-2005 Total steel 8,561,062 7,850,527 8.15 3,399,952 4,396,816 32.12 1. Based iron/ 3,919,571 2,251,957 -3.11 steel 661,050 523,206 27.67 Pellet 1,985,853 565,400 -11.68 140,541 47,451 5.47 Sponge/ Pig Iron 450,947 419,043 17.05 122,426 117,938 47.36 Scrap 1,399,510 1,202,108 -2.94 326,617 283,297 26.19 Ferro Alloy 83,261 65,407 12.07 71,466 74,520 41.81 2. Crude steel 1,706,892 1,750,013 13.02 717,992 765,953 48.1 Slab 488,835 435,295 15.56 194,791 183,128 47.32 Bloom, Billet and 1,217,473 1,284,076 12.27 Ingot 521,596 579,705 48.52 3. Flat steel 2,048,320 2,583,408 17.8 product 1,239,025 1,865,097 33.42 Total HRC/P 1,411,573 1,696,648 20.18 1,260,664 1,452,543 41.72 HRC 872,710 929,266 20.69 387,954 523,277 46.11 HRP 150,909 244,106 14.01 85,903 156,797 30.57 Total CRC/S 825,835 1,109,460 15.72 729,062 1,017,404 28.81 CRC 466,051 619,835 20.03 263,011 397,569 38.1 CRS 96,773 92,056 2.88 63,081 87,237 19.9 Zinc plated iron 110,601 94,557 4.06 sheet 74,728 79,600 28.02 Tin plated iron 124,784 132,090 4.34 sheet 101,755 121,080 24.81 Other coated flat 93,661 96,712 9.71 steel 77,654 85,485 21.81 4. Iron/steel bar 730,999 1,053,443 12.36 products 534,313 915,626 24.55 Wire rod 365,151 500,884 17.66 216,523 320,995 41.01 Steel wire 111,644 106,955 24.92 61,580 70,244 28.75 Stranded/woven 29,899 33,025 16.07 wire 28,268 34,033 14.72 Concrete 713 13,336 69.6 reinforcing iron 521 6,538 97.57 Heavy profile 22,403 47,594 -3.02 14,280 26,780 12.51 Light profile 21,523 37,275 14.19 14,857 25,718 18.55 Source: Data Consult Table--12 Exports of steel products (Tons) (000' US$) Description 2001 2002 2003 Total steel 1,129,668 1,134,712 1,194,673 450,872 476,362 577,996 1. Base steel 75,318 69,097 96,301 64,307 46,524 88,664 Pellet 14 100 580 5,490 16 84 Sponger/Pig Iron 1,015 3,921 19,047 1,670 1,913 4,770 Scrap 36,916 35,095 37,723 15,803 11,954 14,281 Ferro Alloy 37,372 29,981 38,923 46,829 32,640 69,529 2. Crude steel 4,405 4,780 14,476 1,561 3,911 5,734 Slab 97 628 8,151 501 313 2,586 Bloom, Billet and 4,302 3,846 5,960 Ingot 1,378 3,333 2,624 3. Flat iron/steel 483,743 616,647 781,346 products 151,105 218,955 298,753 Total HRC/P 328,895 478,831 593,588 89,112 285,519 444,894 HRC 73,514 224,307 342,753 15,598 61,212 102,141 HRP 239,783 193,312 148,694 57,350 45,322 49,206 Total CRC/S 91,333 133,540 158,424 88,456 125,139 150,463 CRC 67,389 90,754 109,182 21,067 34,385 41,281 CRS 2,878 8,400 7,961 1,527 6,347 2,615 Zinc plated 10,619 19,495 16,049 flat steel 4,729 10,759 9,060 Tin plated 425 1,215 345 flat steel 362 925 217 Other coated flat 6,632 13,656 24,242 steel 6,692 12,263 18,741 4. Iron/steel bar 484,471 390,120 247,446 products 163,084 142,510 108,086 Wire rod 274,105 249,070 168,786 64,358 61,614 50,579 Steel wire 33,679 23,564 19,198 16,079 13,395 14,249 Stranded/ 22,589 25,526 14,124 woven wire 9,565 11,867 9,968 Stranded/ 22,589 25,526 14,124 woven wire 9,565 11,867 9,968 Concrete 1,381 1,419 715 reinforcing iron 302 324 274 31,242 23,572 17,966 Heavy steel profile 10,480 7,498 7,158 8,605 3,957 6,436 Light steel 4,021 1,508 3,730 profile Description Trend (%) 2004 2005 (2001-2005) Total steel 145,971 1,427,811 7.4 882,576 1,028,897 25.4 1. Base steel 188,987 189,676 33.0 108,504 124,848 24.3 Pellet 47,337 248 (17.2) 1,319 82 (33.1) Sponger/Pig Iron 70,061 89,477 226.8 18,786 6,893 66.9 Scrap 38,586 69,806 14.7 19,968 33,926 22.6 Ferro Alloy 33,004 30,392 (3.1) 68,432 84,027 21.0 2. Crude steel 19,002 12,797 42.1 12,304 5,960 46.6 Slab 17,533 11,496 1343.2 7,921 4,141 739.1 Bloom, Billet and 652 1,283 (34.3) Ingot 3,114 1,730 4.0 3. Flat iron/steel 817 18 (22.4) products 477,139 512,686 38.0 Total HRC/P 582,824 614,084 12.6 287,027 259,762 45.3 HRC 194,834 176,795 13.1 92,193 82,967 45.5 HRP 295,797 354,322 12.8 168,554 216,902 48.8 Total CRC/S 287,077 157,331 19.1 285,570 155,742 44.9 CRC 182,134 96,305 15.2 103,436 59,437 37.4 CRS 1,507 1,590 (25.2) 1,115 1,441 (16.9) Zinc plated 36,724 38,393 37.8 flat steel 15,447 25,269 53.1 Tin plated 1,561 5,315 70.0 flat steel 1,351 1,887 44.5 Other coated flat 27,537 11,055 18.8 steel 25,983 16,706 29.4 4. Iron/steel bar 366,986 370,869 (5.8) products 195,885 255,913 13.0 Wire rod 265,203 190,519 (6.4) 95,696 76,342 8.1 Steel wire 18,400 24,908 (8.2) 17,787 24,949 12.3 Stranded/ 9,957 11,732 (20.2) woven wire 12,944 19,526 16.4 Stranded/ 9,957 11,732 (20.2) woven wire 12,944 19,526 16.4 Concrete 215 438 (34.2) reinforcing iron 98 178 (20.1) Heavy steel profile 28,887 43,035 8.8 18,222 23,068 28.0 Light steel 3,848 479 (44.0) profile 2,259 244 (40.5) Source: BPS, Data Consult Table--13 Volume of steel supply and demand, 2001 -2005 Description 2001 2002 2003 2004 2005 Sponge iron Production 1,516 1,478 1,171 1,367 1,327 Exports 1 4 19 70 90 Imports 305 269 272 489 435 Consumption 1,820 1,743 1,424 1,786 1,673 Slab Production 1,217 1,292 1,002 1,190 1,387 Exports 0 1 8 18 12 Imports 305 269 272 489 435 Consumption 1,522 1,560 1,266 1,661 1,811 Billet Production 952 976 1,042 1,199 1,730 Exports 4 4 6 1 1 Imports 784 1,027 876 1,218 1,284 Consumption 1,731 1,999 1,912 2,416 3,013 Concrete reinforcing iron /Light profile Production 1,113 1,141 1,212 1,424 2,002 Exports 9 4 6 4 1 Imports 20 20 23 22 37 Consumption 1,124 1,157 1,228 1,442 2,039 Wire rod Production 610 625 578 651 602 Exports 274 249 169 265 191 Imports 207 230 249 365 501 Consumption 543 606 658 751 912 Hot Rolled Coil/Plate Production 1,935 2,032 2,190 2,442 2,143 Exports 313 418 491 491 531 Imports 476 506 604 873 929 Consumption 2,098 2,121 2,302 2,824 2,541 CRC/Sheet Production 745 755 680 754 722 Exports 70 99 117 184 98 Imports 348 502 477 563 712 Consumption 1,022 1,158 1,040 1,133 1,336 Source: Data Consult Table--14 Prices of HR wide coil *) 2001-2006 (US$/tons) Year USA Germany China 2001 273 242 269 2002 309 249 219 2003 339 350 236 2004 500 459 329 2005 539 601 553 2006 (up to June) 499 489 438 Note: *) Hot rolled wide coil (under 3 mm, un-pickled) Source: Iron and Steel Statistics Bureau Table--15 Retail prices of steel materials of PT KS in Jakarta, 2004-2006 Prices (Rp/Kg) Year/Month HRC CRC Wire Rod 2004 * Mar 5850 6400 5225 * June 5400 6150 4138 * Sept 6350 6475 5325 * Dec 6550 7125 5275 2005 * Mar 7150 8800 5350 * June 6915 8400 4730 * Sept 6600 7800 5140 * Dec 5625 6825 4855 2006 * Jan 5295 6500 4650 * Feb 5065 6200 4295 * Mar 5100 6200 4350 * Apr 5150 6225 4335 Note: Prices including VAT Source: PT KS Table--16 Production costs of HRC and CRC when fuel oil prices at Rp 5,800 per liter HRC production cost Description Price per unit (Rp./ton) I. Basic material Slab price 4,544,242 II. Production cost a. Indirect components : --Electricity 133 Kwh 73,416 --Residue 19 liters 110,200 --Oxygen 0,107 NM3 32 --Air 0,966 M3 646 --Gas 36 Nm3 12,767 --Direct salary 23,480 b. Direct component I: --Spare parts 13,740 Sub total 234,281 III. Fixed cost 114,740 1. Salary/wage 11,740 2. Depreciation -- 3. Maintenance 6,000 4. General cost 97,000 Total 4,893,263 CRC production cost Description Price per unit (Rp/ton) I. Basic material HRC price 5,498,543 II. Production cost a. Indirect components: --Electricity 103 Kwh 56,856 --Residue 17 liters 98,600 --Gas 14 NM3 1,260 --Packaging 0.965 m3 36,314 --Air 0.862 m3 1,604 --Acid Hcl 3.5 tons 1,818 --Lubricant oil 34,104 1.42 ton --Indirect salary 23,480 b. Direct component: --Spare parts 13,740 Sub total 267,776 III. Fixed cost 114,740 1. Salary/wage 11,740 2. Depreciation -- 3. Maintenance 6,000 4. General cost 97,000 Total 5,881,059 Source: Data Consult Table--17 Planned construction of new and expansion of steel factories based on licenses issued by BKPM, 2005-2006 Name/Status Location Capacity ton/year 2005 NASIONAL Mojokerto, Concrete 36,000 INTERINDO METAL, East Java reinforcing iron 15,000 PT/PMA, new China Angle iron JIFLE STEEL Serang, Rolled steel bars 24,000 INDUSTRY Banten Nail of iron steel 3,000 COMPANY, PT/PMA, new, China HWA LIEN STEEL Tangerang, Steel 36,000 FACTORY, PT/PMA, Banten new, China JAKARTA CENTRAL East Jakarta Rolled steel bars 400,000 ASIA STEEL, PT/PMA, Nail of iron steel 50,000 new, China Nuts and bots of iron steel 50,000 PETRA STEEL, Tangerang, Hot rolled slit coil 24,000 PT/PMA, Banten Cold rolled slit coil 24,000 new, Malaysia Pipe 10,000 Angel bar 1,000 TJING KWO STEEL Bekasi, Concrete 300 INDUSTRY, PT/PMA, West Java reinforcing iron 300 new, China Concrete 300 reinforcing iron spiral Angle iron PAN PACIFIC Tangerang, Steel billet 30,000 INDOTAMA, PT/PMA, Banten new, China 2006 TAMSON METAL, PT/ Tangerang, Wire rod 12,500 PMA, new, China Banten Square bar Round 12,500 bar 12,500 Angle bar 12,500 INTER WORLD STEEL Tangerang, Billet 65,000 MILLS INDONESIA, Banten Concrete 80,000 PT/PMA, expansion reinforcing iron INDONESIA STEEL Semarang, Pipes and steel 48,000 TUBE WORKS, Central Java tubes PT/PMA expansion Name/Status Investment 2005 NASIONAL US$ 4.800.000 INTERINDO METAL, PT/PMA, new China JIFLE STEEL US$ 6,400,000 INDUSTRY COMPANY, PT/PMA, new, China HWA LIEN STEEL US$ 4,000,000 FACTORY, PT/PMA, new, China JAKARTA CENTRAL US$ 36,600,000 ASIA STEEL, PT/PMA, new, China PETRA STEEL, US$ 1,200,000 PT/PMA, new, Malaysia TJING KWO STEEL US$ 400,000 INDUSTRY, PT/PMA, new, China PAN PACIFIC US$ 2,500,000 INDOTAMA, PT/PMA, new, China 2006 TAMSON METAL, PT/ US$ 500,000 PMA, new, China INTER WORLD STEEL RP. 50 billion MILLS INDONESIA, PT/PMA, expansion INDONESIA STEEL US$ 12,000,000 TUBE WORKS, PT/PMA expansion Source: Data Consult, BKPM Table--18 Projection of steel requirement, 2006-2010 (000 tons) Prod. Projected demands Types of steel Capacity products 2005 2006 2007 2008 2009 2010 Long Products Billet 4,785 3,481 4,022 4,647 5,369 6,204 Concrete reinforcing iron/Light profile 4,400 2,385 2,789 3,262 3,816 4,463 Wire Rod 1,015 1,040 1,185 1,351 1,540 1,755 Flat Products Slab 1,850 1,919 2,034 2,155 2,284 2,421 HRC/Plate 2,200 2,683 2,832 2,990 3,157 3,333 CRC/S 1,350 1,436 1,544 1,659 1,783 1,917 Source: Data Consult/ICN