I Gusti Putu Suryawirawan, Director General of Metal, Machinery, Transportation Equipment and Electronic Industries at Indonesia’s Industry Ministry, recently said many project developers prefer to import steel from China and Vietnam. While restricting imports of products of iron or steel, alloy steel, and its derivatives into Indonesia, Government is also still focusing on trying to lower energy costs (especially gas prices). Steel production costs in Indonesia are expensive due to the US$9.2 mmbtu gas price. Moreover, logistics costs in Indonesia remain high and undermine the competitiveness of local businesses. Another threat comes from Vietnam that is now producing around 5 million tons of steel per year while the country’s domestic consumption only stands at 2.5 million.