Indonesia has issued a new regulation limiting the volume of imported alloy steel to protect the domestic industry, according to Bachrul Chairi, Director General for International Trade under the Indonesian Ministry of Trade.

The decision came after the Indonesian Iron and Steel Industry Association (IISIA) lodged a formal complaint with the Ministry of Industry over a sudden increase in imported alloy steel containing boron, to be used in infrastructure projects, he said.

The association held that the rise in imported steel was the result of exporters, especially those from China, receiving subsidies and incentives from their governments for the product. They argue that the result has been making domestic alloy steel in Indonesia less competitive.

According to IISIA senior official Basso Datu Makahanap, the amount of imported steel numbered 400,000 tonnes, resulting in a loss of about 439 billion Rupiah (around 37 million USD) in revenue for the domestic industry.

Indonesian consumption was 8.2 million tonnes in 2012, while its production capacity was only 6 million tonnes.

The country has expanded investment for the sector with 58.5 trillion Rupiah (4.97 billion USD) last year from 38.3 trillion Rupiah (3.29 billion USD) in 2012.-VNA