The Indonesian government considered to relax the scrap metal import rules to support the downstream industry, said the industry minister Agus Gumiwang, yesterday (Feb 12). It is expecting the new policy will lead to a reduction in imports of steel billets.
At present, he explained, scrap metal included in the government’ list of dangerous and poisonous waste. Importers of such waste must have a licence and must obtain numerous permits from the ministries of industry, environment and trade. He noted, the new government measure would exclude scrap metal from that lists and potentially reducing the number of permits.
Currently, the needs of scrap metal reach 9 million tons from local producers, which can support billet production of 4 million tons per year in the country, he adds. According to the minister, if the plans goes well Indonesia will saving import costs around US$400 million per annum.
