Cross-Government Agency Synergy Strengthens Future of National Steel Industry
PT Krakatau Steel (Persero) Tbk, or Krakatau Steel Group (KRAS), has reaffirmed its commitment to accelerating business transformation and strengthening the operational capacity of Indonesia’s national steel industry through strategic cross-agency synergy. This commitment was demonstrated during a working visit by DPR Commission VI, Danantara Asset Management, and the SOE Regulatory Agency to Krakatau Steel Group in Cilegon on Thursday, 12 March, to directly assess operational developments and the progress of the company’s production facility revitalisation programme.
Deputy Chair of DPR RI Prof Nurdin Halid stated that the visit formed part of efforts to reinforce national steel industry sovereignty and to execute DPR’s supervisory function as a follow-up from a hearing session with Krakatau Steel in early February. “DPR Commission VI will continue to oversee the company’s performance to ensure it strengthens further and becomes the backbone of Indonesia’s national steel industry,” he said.
He and Commission VI also commended the company’s 2026 restructuring efforts to continue the corporate transformation deemed successful in 2025. “The company’s performance achievements and transformation steps align with President Prabowo Subianto’s Asta Cita, particularly in strengthening national strategic industries,” Nurdin added.
He also emphasised that during the hearing, Commission VI had requested the government, particularly the Ministry of Industry, not to issue Technical Approvals (Pertek) for steel imports whilst domestic needs could still be met by the national steel industry.
As part of the company’s business transformation efforts, Danantara Investment Management Agency has channelled a Shareholder Loan facility valued at Rp4.93 trillion to Krakatau Steel to strengthen liquidity and support operational capacity increases. Krakatau Steel President Director Akbar Djohan reported that by the first week of March 2026, the drawn shareholder loan had reached Rp4.367 trillion. The majority of funds have been utilised for raw material purchases valued at Rp4.050 trillion, equivalent to approximately 477,000 tonnes, with around 40 per cent of material already delivered to support the company’s production activities.
Additionally, the financing facility supports the implementation of the corporate transformation programme, including the Golden Handshake programme valued at Rp91 billion. The remaining facility of Rp849 billion will be utilised in accordance with the Shareholder Loan Agreement.
On this occasion, Akbar emphasised the importance of strengthening an integrated national steel industry ecosystem to address global geopolitical dynamics and the intensifying global steel industry competition. “This cross-agency collaboration is expected to strengthen an integrated national steel industry ecosystem that is more resilient, efficient, and globally competitive,” Akbar concluded, noting his roles as Chairman of the Indonesian Iron & Steel Industry Association (IISIA) and Chairman of the Indonesian Logistics and Forwarder Association (ALFI/ILFA).
The transformation is revolutionising human resources into business-driven people supported by full organisational agility. Krakatau Steel’s modular steel is not merely a matter of speed, but a manifestation of environmentally friendly future construction. As part of the Indonesia Incorporated vision, Krakatau Steel has received working capital support of US$295 million from Danantara through a highly stringent mechanism.
Concrete state support through trade protection, strengthening commerce arrangements, and support for domestic production will form the foundation for Krakatau Steel to rise more strongly. The national steel industry is currently facing global pressure and structural challenges, including the influx of low-priced imported steel products that undermine competitiveness.