With the leases of 232 merchant iron ore mines expiring in March next year, the country may face a short-term disruption in supply of the main ingredient used in making steel, Acuite Ratings & Research Ltd said today.
"The expiring leases can potentially curtail about 25-30 per cent of the country's iron ore production, taking into account the expiring leases of other states as well," Acuite Ratings & Research Ltd said in its latest report.
The progress of the metal industry in Indonesia is quite encouraging. Now the national steel industry is ranked sixth in Asia in terms of crude steel production. Total production now reaches 8 million tons per day.
"But we must not be proud and careless, because other ASEAN countries are working to advance the steel industry," Doddy said in a statement in Jakarta, Tuesday (05/30/2017).
Doddy gave an example, Vietnam is one of the ASEAN countries that has plans to make 10 Blast Furnaces until 2030. They want to advance the steel industry and the shipping industry.
For this reason, Indonesia must also carry out a number of improvements and harmonization of regulations to ensure the certainty of the national steel industry can grow and develop in the country.
Industrial Relations Code: Non-renewal of contract won’t be retrenchment
Termination of service of a worker on completion of tenure in a fixed-term employment will not be considered as retrenchment, according to the Industrial Relations Code Bill.
The labour code on Industrial Relations 2019, cleared by the cabinet last week, also says that fixed-term employees will get all statutory benefits like social security, wages, etc. on par with the regular employees who are doing work of same or similar nature.