Member of House Commission VII Mulyanto. Photo: Oji/vel

PARLEMENTARIA, Jakarta - Member of Commission VII of the Indonesian House of Representatives Mulyanto urged the Government to immediately revoke the business licenses of 40 Chinese companies proven to be producing illegal steel. The government, he emphasized, must not be cherry-picking when it comes to enforcing the law.

"The trade of illegal steel can be harmful to consumer safety and also unfavorable to other steel companies that comply with laws and regulations," said Mulyanto in a short message to Parlementaria in Jakarta, Monday (4/29/2024).

The Prosperous Justice Party (PKS) Faction politician went on to say that Indonesia was not in need of foreign investment, but quality investment. He believed the country needed to drive the national economy, not cause complications for the domestic economy. 

“If necessary, we need to investigate those who back this illicit practice. It is quite possible that these companies also violate other procedures”

For this reason, Mulyanto asked all the relevant ministries to closely coordinate and take firm action by revoking the operational permits of companies that produce illegal steel. 

"If necessary, we need to investigate those who back this illicit practice. It is quite possible that these companies also violate other procedures that allow them to produce steel without meeting the Indonesian standards," he added.

In other words, continued the man who is also known as Pak Mul, the Government must seriously address this violation. We certainly don't want the Government to boost foreign investments at the expense of lawful practices. The state must not approve anything that investors ask for unconditionally in exchange of their willingness to start a business in Indonesia. 

In Mulyanto's view, this is such a reckless mentality. In a way, he believes, the Government seems to put the state's sovereignty up to the highest-bidding foreign companies. At the end of the day, it will be detrimental to the public at large and the country as a whole. 

Currently, there are at least 40 Chinese companies that produce illegal steel or in production without meeting the Indonesian national standards. The steel production involves an induction method that is not permitted in either China or Indonesia. The illegal steel production process is considered dangerous for environmental sustainability and consumer safety. Previously, similar case of problematic investment case from China was found in the nickel smelter industry. (ayu/rdn/agl)