Demand Drivers Analysis for New Steel Investment Plant in Indonesia
The purpose of this research is to identify what are the demand drivers of Indonesian steel consumption related with other related industry, to identify the factors which influence the development of each sector industry, and finally to analyze demand drivers in domestic steel consumption as a base for the new investment decision.nnThe methodology used for this research is regression analysis. Regression analysis is used to study the relationship between a dependent variable and independent variables.nnEach industry production has different correlation with their demand drivers. For example, USD-IDR rate, SBI rate, economic growth, raw material price, gasoline price, diesel price, and many other drivers might have linear relationship with different industrial production that used steel as their material.nnIn conclusion, the government must support domestic investment project and FDI project in order to increase Indonesia economic growth of course with a thorough research and study before investing.
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