Indonesia hopes to earn US$10 billion from Iron and steel exports

Jakarta (ANTARA) - Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan (LBP) has said that the government has set a target of earning US$10 billion from iron and steel exports this year.

Although the value was relatively small, the amount would significantly help export performance, Pandjaitan said here on Saturday.

He said the country's investment sector was badly affected by the COVID-19 impacts, however exports began to go up.

"(COVID-19) has hit demands, consumption and investment hard since the beginning of this year until at present," he said at an online LBP Afternoon event entitled "Investment in the Middle of the Pandemic" .

During the COVID-19 pandemic, exports of iron and steel had grown higher than the exports of vehicles, according to him.

"In 2014, our raw material exports were valued at US$1.1 billion, while the value of car exports reached US$5.2 billion US dollars. In 2019, after we built the smelter, we exported iron and steel at the total value of US$7.4 billion, and car exports at US$8.1 billion," he said.

During the first quarter of this year, Indonesia exported iron and steel worth US$2.3 billion, he added.

Based on data as of July 25, 2020, the iron and steel exports reached US$4 billion, and vehicle exports were worth US$2.3 billion.

In the meantime, the Investment Coordinating Board (BKPM) registered a 4.3-percent decrease in the realization of investment during the second quarter (Q2) of 2020, reaching Rp191.9 trillion, from the Rp200.5-trillion investment during the corresponding period last year.

BKPM Head Bahlil Lahadalia stated on July 22 that investment during the April-June period had dropped 8.9-percent as compared to the investment of Rp210.7 trillion in the first quarter of the year.

"Our target is more than Rp200 trillion for the second quarter. However, we are all aware of the tough situation arising from the COVID-19 pandemic. The second-quarter period is quite tough," he noted.

The realization of foreign investment in the second quarter of 2020 reached Rp97.6 trillion, or 50.9 percent of the total investment, while domestic investment was recorded at 49.1 percent, or some Rp94.3 trillion.