"We need to build a world-class steel industry," Yudhoyono said when meeting the Board of Directors of PT Krakatau Steel (Persero) Tbk and PT Krakatau Posco in Cilegon, Banten, on Tuesday.
President who was accompanied by several ministers asked the national steel industry, especially PT Krakatau Steel, can increase yield and improve product quality.
In addition, the company's working climate should be conducive. Companies must be able to maintain good relations with employees and local communities.
The steel industry is very important because it can enter into various sectors. Industry is necessary for the development of infrastructure, property, defense, and so forth.
Therefore, the development of the steel industry is optimistic that Yudhoyono will support national economic growth.
The head of state welcomed the cooperation PT Krakatau Steel with companies of South Korea, resulting in a joint venture company named PT Krakatau Posco.
He hoped Indonesia could follow the example of the success of South Korea that could be developed within a period of about three decades.
However, Yudhoyono still expect all the steel industry in Indonesia has always placed a high priority of national interests.
Meanwhile, President Director of PT Krakatau Steel, Fazwar Bujang state-owned company is optimistic it will continue to grow.
According to him, Krakatau Steel's production capacity now reaches 3.15 million tonnes per year. He estimates that production capacity could be increased to 4.52 million tons per year.
While the joint venture could generate Krakatau Posco steel products as much as 3 million tons per year. In the next stage of investment, capacity is expected to rise to 6 million tons per year.
PT Krakatau Steel (KS) and Pohang Iron and Steel Corporation (Posco) of South Korea formally established a joint venture integrated steel plant in Indonesia, with an investment of about six billion dollars or about Rp54 trillion.
In the initial composition, Posco has a joint stock company that is 70 percent and 30 percent of KS. Furthermore, after one year of the establishment of a joint venture, the portion of KS shares will increase to 45 percent, while Posco accounts for 55 percent.
The value of investment projects in the Rp38 trillion and Rp31 trillion in the construction stage of production.(source)