Construction Work Must Optimize Local Iron and Steel

Director General of Construction Development at the Ministry of Public Works and Public Housing Yusid Toyib said the policy to increase the level of domestic components (TKDN), especially iron and steel, should be obeyed by all those implementing construction works financed using the government budget (APBN / APBD).
"If we work in the construction sector, we are firm in using domestic iron and steel products," said Yusid.

Yusid said, the ministerial regulation explicitly explained the provisions, including those stipulated in the tender conditions so that the executors of the work either from BUMN or private would use iron and steel from within the country.

He said, the quality of national steel is actually better for use in construction, be it bridges, roads, or multi-storey buildings, then all of its classifications for various uses also meet the requirements.

"So that the use of domestically produced iron and steel should be used for all construction work. It should not only be government projects but also the private sector that must use domestic components," he said.

Indeed, some BUMNs have not implemented this policy, such as for electricity or oil and gas, but in fact it can be resolved first through testing to prove that domestic iron and steel are also feasible for both jobs, said Yusid.

Previously, the Ministry of Industry highlighted PT Pertamina (Persero) which still prioritizes the use of steel from abroad in its project development, as well as power plant projects and heavy equipment manufacturers.

Minister of Industry Saleh Husin emphasized that this method is against the government's policy of increasing the use of domestic components.

Executive Director of the Indonesia Iron and Steel Industry Association (IISIA) Hidayat Trisepoetro said the government could use the Financial and Development Supervisory Agency (BPKP) to inspect all APBN, APBD and BUMN projects.

"BPKP will be involved in auditing construction works financed by the state budget, regional budget and state-owned enterprises so that the TKDN increase program can be realized," he said.

All contractors involved in the development of government and BUMN projects can be examined whether they have implemented the policy. Progress related to the examination should have existed and should have been published so that the TKDN program could be carried out well, he said.

Saleh Husin said that BUMN involved in construction work should prioritize the use of domestic steel.
"Indonesia has been able to produce like those produced in Batam, Cilegon and Bekasi. It is different if we are not able to produce it, then we can import it. But when we are domestic, why should we prioritize from outside," he said.