DEMAND FORECASTING OF IRON ORE AND EFFECT OF INCREASING ADDED-VALUE OF IRON ORE INTO PIG IRON TO INDONESIAN ECONOMICS.

• Main Author: Zam Mili, Marwan
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/78501
• Institution: Institut Teknologi Bandung

iron ore mining industry, Indonesian exports of iron ore with low grade. However, on the other hand on the steel industry, Indonesia imports iron ore concentrate/ pellet with higher price than exports price . It leads to iron ore trade balance was deficit. The government has issued Law No. 4 of 2009, where in article 102 stated “mining permit holder and special Mining Permit holder must increase add value to mineral and/or coal resources in undertaking mines, processing and refining/smelting as well as utilizing mineral and coal”. In this research examines Indonesia iron ore demand and the effect of increasing added value of iron ore into pig iron. Iron ore demand is obtained by calculating the total content of Fe in steel products all have the most demand in Indonesia and then calculated the total pig iron is required. After obtained a total pig iron demand, then converted into the amount of iron ore demand. In this assessment, the modeling consumption of iron ore used econometric methods, and then calculate the increasing of value-added of iron ore for iron steel industry until 2019 . From the results of forecasting and calculation shows that in 2019, demand of iron ore is 62.3 million ton. Furthermore, the total increasing added – value of iron ore into pig iron in projection period (years 2014-2019) is about $ 35.28 billion.