The company has allocated more than 500 hectares of land in the Krakatau Industrial Zone in Cilegon, Banten province, aiming to make the area a center of attraction for a new generation of environmentally friendly steel production.
Founded in 1970, Krakatau Steel is majority controlled by Danantara on behalf of the Indonesian government. The company's latest step involves a major partnership plan involving PT Dexin Steel Indonesia, founded in 2020. Dexin operates as a subsidiary of China's Delong Group through Singapore and produces steel at the Morowali Industrial Park.
The planned investment aims to build an integrated steel plant with an annual capacity of 3 million tons. “This cooperation is not only about optimizing our assets, but also about bringing in valuable technology and expertise,” stated Akbar Djohan, President Director of Krakatau Steel, on June 9, 2025, adding that this step was shaped by contacts made in China in May 2025.
Delong Steel Group, the 11th largest steel producer in the world and the 7th largest steel producer in China, considers Cilegon as a prominent investment area with its strategic location and advanced infrastructure. The new plant is expected to be one of Indonesia's pioneering projects, not only producing high quality steel, but also green steel production.
“Our main vision is to revitalize the national steel industry and make Cilegon the benchmark in Southeast Asia's environmentally friendly steel sector,” stated Akbar.
While negotiations are still ongoing, the investment is expected to create thousands of jobs, boost Indonesia's value-added industrial production and contribute significantly to the national economy. “We are not just building a plant; we are developing a resilient, globally competitive national steel ecosystem,” concluded Akbar Djohan.
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