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Substandard steel crackdown ignites calls for tighter industry supervision
The distribution of substandard steel could increase the risk of construction accidents and infrastructure failures, as well as hamper market competition.
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A worker at a steel factory in Cikarang industrial estate in Bekasi, West Java inspects products on Oct. 4, 2019. (Antara/Fakhri Hermansyah)
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ndustry players and analysts have applauded the destruction of more than 27,000 tonnes of concrete reinforcing steel worth more than Rp 250 billion (US$15.58 million) over an alleged lack of compliance.
According to them, the government crackdown could prevent the risk of buildings collapsing caused by the use of substandard steel, as well as maintain healthy competition in the country’s steel market.
However, they also urged the relevant ministries to increase collaboration for tighter supervision, to prevent similar cases in the future.
On April 26, Trade Minister Zulkifli Hasan conducted an unannounced inspection at a steel factory belonging to PT Hwa Hok Steel in Banten. During the probe, he ordered the destruction of more than 3.6 million pieces of steel that he said failed to meet Indonesia National Standard (SNI) quality requirements.
Zulkifli explained that he had sealed three out of 40 factories, which were owned by different companies and showed indications of producing substandard steel.
“Many Chinese companies [producing substandard steel products] have come to our country, because they have been forbidden to [sell such products] in their own country,” he said during the inspection, as quoted by Tempo.
Moga Simatupang, the consumer protection and trade compliance director general at the Trade Ministry, said the issue had been discovered during a follow-up to the regular supervision conducted on goods circulating in the market.
