Krakatau Steel urges FTA implementation with stronger domestic industry focus

Indonesia must bolster its domestic industries to fully capitalize on the opportunities presented by free trade agreements (FTAs), according to PT Krakatau Steel CEO Akbar Djohan. He argues that simply opening markets through FTAs is insufficient if it does not simultaneously enhance the nation's industrial capacity and competitiveness.

Speaking at a forum in Jakarta, Djohan stressed that the benefits of FTAs should translate into real gains for the national economy. This requires a strategic approach that considers impacts on investment, industrial utilization, job creation, and the sustainability of national supply chains. He highlighted the interconnectedness of the steel industry, noting that every dollar in steel activity can generate significant economic ripple effects.

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FTA must open markets and strengthen the competitiveness of national industries. What we need to see is not just how trade becomes more open, but how that openness provides real benefits for the national economy and industry.

Djohan urged for trade policies that not only expand market access but also support crucial areas like investment, downstream processing, and technology transfer. He also called for responsive trade remedies and robust Rules of Origin to safeguard national industrial interests. Ultimately, he stated, any trade scheme must demonstrate clear benefits for Indonesia's industries and overall economy, serving as a tool to strengthen the nation's industrialization foundation.

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Ultimately, any policy or scheme must be viewed from its real benefits for national industry and the economy. FTAs must be an instrument to open markets, but at the same time strengthen the foundation of Indonesia's industrialization.