The collaboration focuses on meeting a total of 36,000 tons of Cold Rolled Coil (CRC) and Hot Rolled Pickled Oil (HRPO) steel raw material needs for the upcoming year.
Under the agreement, Krakatau Steel will guarantee the stability of raw material supply to support continuous production across all operations of the Kerismas Group. The signing ceremony was attended by Hernowo, Commercial, Business Development, and Portfolio Director representing Krakatau Steel, and Lau Beng Sing, President Director representing the Kerismas Group. The agreement aims to ensure uninterrupted downstream production in all business units under the Kerismas Group, including PT Tumbakmas Inti Mulia, PT Semarang Makmur, and PT Poli Contindo Nusa.
Strategic step to strengthen the sector
The agreement is considered part of Krakatau Steel Group’s strategy to strengthen the national steel industry ecosystem. In February 2026, the company carried out a similar collaboration with PT Fumira, committing to supply a minimum of 3,500 metric tons of CRC monthly throughout 2026. Consecutive long-term agreements reinforce Krakatau Steel’s position as a primary supplier for the raw material needs of the national manufacturing industry.
Financing support reinforces supply chain
The implementation of the LTSA was supported by working capital assistance provided by Danantara. This support ensures sustainable procurement of raw materials, which play a critical role in producing high-value steel products. Hernowo emphasized that this support is crucial for supply chain stability, stating that guaranteeing raw material availability provides customers with secure supply. He also emphasized that supply stability directly affects the market performance of business partners.
Competitiveness and export potential will increase
Hernowo stated that, thanks to high-quality CRC and HRPO products, the Kerismas Group can meet domestic demand while enhancing competitiveness in international markets. He added that this process will accelerate downstream integration in the local industry, helping economic value remain within the country. This approach aligns with the Asta Cita vision introduced by Prabowo Subianto.
National industry ecosystem strengthens
Krakatau Steel Group continues efforts to create an independent and competitive industrial ecosystem by strengthening local raw material supply, led by Dr. Akbar Djohan, President of the Indonesian Iron and Steel Industry Association and Indonesian Logistics and Forwarders Association. The company aims to enhance economic sovereignty through downstream integration and ensure local workforce receives a larger share of value added.
Emphasis on long-term partnership
Lau Beng Sing, President of the Kerismas Group, emphasized that the agreement is critical for operational stability, stating that Krakatau Steel’s continuous raw material support guarantees production continuity. Both parties highlighted that this partnership aims to jointly respond to challenges in the global steel sector and make a tangible contribution to the Indonesian economy.
Comments
No comment yet.