The Indonesian government has asked Japanese steel manufacturer Nippon Steel to build a factory for specialized steel production for the automotive and electronics industries.
The import value for this commodity has reached one billion dollars per year.Minister for Industry, Fahmi Idris, said the investment is key as the steel manufacturing industry in Indonesia has yet to be able to produce the special type of the steel, while the automotive and electronic industries continue to grow.
According to Idris, in 2005, car production and demand surpassed 500,000 units. While local demand may only reach 310,000 units, the export market may increase, requiring production to reach more than 400,000 units.