Expansion of Employment and Supporting the Need for Iron and Steel Products in Central Java during the Covid-19 Pandemic

December 17, 2020

Kendal - PT. Auri Steel Metalindo is one of the leading companies in the light steel industry in Central Java which produces various mild steel products such as lightweight steel roof trusses, galvalume roofs, square pipes, sand roofs and so on. Auri Steel has a vision to become a company that excels in the trade and light steel industry and is able to compete in the global market. Then in realizing this vision, Auri Steel plans to further expand its production in Indonesia, and then choose Kendal Industrial Park as the location for their expansion. The main reason Auri chose Kendal Industrial Park (KIP) was due to the status of KIP's Special Economic Zone. By investing in KIP there are many investment benefits such as tax exemption and reduction, as well as import duty facilities. Auri Steel's total investment in the Kendal Industrial Park is USD 4.9 million and will absorb a workforce of 1.000 people after the factory is fully operational.

The realization of the construction of the Auri Steel factory at KIP has been carried out since the beginning of 2020. Even though it was hampered by the COVID-19 Pandemic, the soft launching of the new factory of PT. Auri Steel Metalindo at KIP can be held on Thursday, December 17, 2020. The soft launching event of PT Auri Steel Metalindo was attended by Achmad Sigit Dwiwahjono (Secretary-General of the Ministry of Industry), Taufiek Bawazier (Director General of ILMATE, Ministry of Industry), Didik Purbadi (Executive Director of Kendal Industrial Park), and several invited guests from supplier company PT Auri Steel Metalindo.

In his speech, Auripallas Pramana as President Director of PT. Auri Steel Metalindo said that “KIP as a Special Economic Zone has many advantages compared to other regions, while we also have a high level of trust with the developer, PT Jababeka Tbk. and Sembcorp from Singapore. Because to decide on a factory location, sustainability and management roles are very important for the continuity of operations in the long term."

The Secretary-General of the Ministry of Industry, Achmad Sigit Dwiwahjono, welcomed the soft launching of the new factory of PT. Auri Steel Metalindo with great enthusiasm. "The Metal Industry sector as a major component of national economic development has the potential to contribute to economic development through added value and will be a multiplier effect for socio-economic activities, employment, foreign exchange-earners and a push factor for increasing the nation's economic competitiveness". He continued, "The utility of domestic steel mills is still low, causing Indonesia to still import iron, steel, and their derivative products. The expansion of the light steel factory of PT. Auri Steel Metalindo is good news for the steel industry in Indonesia because it can increase the value of domestic production. "

Meanwhile, Taufiek Bawazier (Director General of ILMATE Ministry of Industry) said that "Expansion of production facilities of PT Auri Steel Metalindo is an achievement for the Kendal Industrial Park and Central Java Province in contributing to building the national economy, especially in the steel industry sector, in the midst of this Covid-19 Pandemic. "

Didik Purbadi as the Executive Director of KIP also revealed that the existence of the Auri Steel factory in the Kendal Industrial Park could support the growing demand for iron and steel products in Central Java. In the future, it is hoped that Central Java will become more independent in the production of iron and steel industries such as West and East Java. In addition, the Auri Steel factory at KIP is also expected to improve the economy and welfare in Central Java, given the large number of workers who will be absorbed from the operation of this factory.