REPUBLIKA.CO.ID, JAKARTA - South Korean steel company, Pohang Iron and Steel Company (POSCO), is ready to double its investment in Indonesia. POSCO planned to invest on 11 billion USD for the development of steel, energy, and smelter, Coordinating Minister of Economy Hatta Rajasa said.

Government has prepared 45 hectare area in Cilegon, Banten for POSCO. The building of POSCO steel plant is important for Indonesia as it helps yielding steel for local demand. 

The Indonesian Iron and Steel Industry Association (IISIA) stated that the local steel production was imbalance with local demand. Thus, Indonesia is forced to import steel from several countries. On 2011, local demand of steel hit eight to nine million tonnes, while the local production was only four to five million tonnes.

Japan will also invest worth 410 trillion IDR for Metropolitan Priority Area (MPA). Around 45 percent would be pushed using a public private partnership (PPP) scheme, Rajasa said.

Japan's Ambassador to Indonesia, Yoshinori Katori, said MPA concentrated on the development of metropolitan. There are at least 45 projects on MPA to be finished on 2020. 18 projects of 45 are fast track project starting on 2013.

MPA aims to enhance urban environment, build sub-corridors, build more gateways, and develop low carbon energy. Katori also explained that MPA had five flagship projects. The projects are building of Mass Rapid Transit (MRT) in Jakarta, establishing Cilamaya Port in Karawang to support export-import, developing Soekarno-Hatta Airport, building new cluster for scientific research, and improving wastewater facilities in Jakarta.

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