Krakatau Steel pushes for FTAs to strengthen national industrial competitiveness
Free trade agreements must open markets while simultaneously strengthening the competitiveness of national industry.
Jakarta (ANTARA) - President Director of PT Krakatau Steel (Persero) Tbk/Krakatau Steel Group (KRAS) Akbar Djohan emphasised the importance of implementing Free Trade Agreements (FTAs) that can deliver benefits to the economy while strengthening the competitiveness of national industry.
According to him, in a statement in Jakarta on Friday, the opening of global trade markets through FTAs needs to be balanced with the strengthening of domestic industry.
“FTAs must open markets while strengthening the competitiveness of national industry. What we need to look at is not only how trade becomes more open, but how that openness provides real benefits for the economy and national industry,” he said.
He stressed that the steel industry has a large multiplier effect on supply chains and related industries, whereby every 1 US dollar of activity in the steel industry can drive around 2.5 US dollars in the supply chain and up to 13 US dollars in related industries.
Therefore, continued the Chairman of the Indonesian Iron & Steel Industry Association (IISIA) and Chairman of the Indonesian Logistics & Forwarders Association (ALFI/ILFA), the implementation of FTAs needs to take into account their impact on national industry, including investment, industrial utilisation, labour, and the sustainability of supply chains.
Akbar stated that Krakatau Steel also encourages FTAs to be directed towards opening market access, while supporting investment, downstreaming, technology transfer, and improving the competitiveness of national industry.
This, he said again while presenting at the Focus Group Discussion (FGD) “The Impact of Free Trade Agreements (FTAs) on Indonesia’s Economic Performance and Industrialisation”, can be achieved, among other things, through the implementation of responsive trade remedies and the strengthening of Rules of Origin (ROO).
“Ultimately, any policy or scheme must be assessed by its real benefits for industry and the national economy. FTAs must be an instrument to open markets, but at the same time strengthen the foundation of Indonesia’s industrialisation,” he said.
Strengthening the competitiveness of national industry through the implementation of FTAs, according to him, also supports President Prabowo Subianto’s Astacita, particularly the agenda of continuing downstreaming and industrialisation to increase domestic added value.