Support from Danantara enabled Krakatau Steel to increase utilization of its production facilities, secure stability in raw material supply, accelerate production cycles, and enhance price and delivery competitiveness to meet customer demand.
strong support from Danantara for national steel industry
Krakatau Steel expressed gratitude to Danantara for significant working capital support provided under the program to improve the financial health of state-owned enterprises. This support strengthens the company’s financial and operational structure, facilitating Krakatau Steel’s achievement of sustainable production and profitability targets.
Danantara Business Development Director Febriany Eddy emphasized that the steel sector is a strategic industry and that Krakatau Steel needs to quickly achieve a healthy structure. Eddy stated, “The steel sector progresses in parallel with economic growth. Therefore, instead of focusing on the current situation, long-term investments need to be considered.” He also highlighted that the support aligns with goals of strengthening national industry independence, developing domestic manufacturing, and securing steel supply for infrastructure and defense projects.
profit target for 2025
Following the transformation process initiated with Danantara support, Krakatau Steel reported a profit of 401 billion Indonesian Rupiah in the third quarter of 2025. The company achieved this profit by reducing financial obligations through some creditors’ acceptance of a “haircut” program.
Of the total 200 million USD debt, 35 million USD was repaid, resulting in an approximate 82.5 percent reduction. This allowed Krakatau Steel to achieve 295 million USD in profit and reduce the main burden of restructured debts by 20 percent. An annual interest saving of approximately 3.5 million USD was also realized.
Krakatau Steel CEO Akbar Djohan stated, “Our goal is not only to overcome financial pressures but also to position the company as competitive, sustainable, and supportive of national development.”
about the company
Established on 31 August 1970, PT Krakatau Steel operates not only in steel production but also in integrated industrial zones, port operations, logistics, industrial water, and energy production. The company continues its transformation under the vision “Revolutionary Movements: Committed to Transform” by developing human resources, infrastructure, and subsidiary industries.
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