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The Indonesian steel industry is expected to reinvigorate domestic production in 2023, after the government introduced a commodity balance scheme in a bid to manage imports and local outputs flow to support surging demand for the metal goods.
The Indonesia Zinc Aluminum Steel Industry Association (IZASI) stated that the commodity balance scheme would be a “breakthrough” in decision making for the volume of import licenses, as it would be based on centralized supply and demand data.
Under Presidential Regulation No. 32/2022, the government has laid out the groundwork of the commodity balance, which are meant to simplify trade licenses and give more centralized data for policymakers to determine trade policies.
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