Financial Restructuring Strengthens Net Profit Performance
“Peace is not merely the absence of war. It is a virtue,” wrote philosopher Baruch Spinoza.
PT Krakatau Steel (Persero) Tbk (the Company)/Krakatau Steel Group (KRAS) announced a significant milestone in its transformation journey by booking a net profit of US$339.64 million (equivalent to Rp5.68 trillion) for the 2025 fiscal year.
This achievement stems from the trust of stakeholders and phased strategic internal improvements.
President Director of PT Krakatau Steel (Persero) Tbk, Akbar Djohan, stated that the net profit recorded in this period largely originated from book profits (accounting gain) due to the success of a comprehensive debt restructuring programme.
The Company, he said, recorded financial income of US$519.92 million from that restructuring process, including profits from the settlement of accelerated liabilities (haircut) worth US$156.74 million.
According to him, this positive result is inseparable from the full support of the government through Danantara as well as the trust of creditors and business partners.
“We are deeply grateful for this achievement as a form of mandate from stakeholders. Funding support and trust from Danantara have been the main drivers for us to continue improving. This profit is a starting point that we approach with humility to ensure the sustainability of the national steel industry,” said Akbar Djohan on Wednesday (1/4/2026).
He explained that throughout 2025, the Company managed to book revenue of US$959.84 million (Rp16.05 trillion). Total steel product sales volume reached 944,562 tonnes, a sharp increase of 29.0% from the previous year.
According to Akbar Djohan, Krakatau Steel’s resilience in 2025 is not only reflected in profit figures but also clearly evident in the increasingly healthy and robust balance sheet structure.
The Company succeeded in strengthening its financial position by recording total assets of US$2.77 billion or equivalent to Rp46.24 trillion. At the same time, the Company’s commitment to settling debt obligations yielded tangible results, with total liabilities reduced by 17.04% to US$2.04 billion (Rp34.11 trillion).
“The positive impact of this performance improvement has brought very significant growth to the Company’s equity side. Recorded, the Company’s equity value more than doubled to US$725.51 million or about Rp12.13 trillion, an indicator that Krakatau Steel now has a much stronger financial foundation for future expansion,” he said.
Complementing this financial health, the Company reaffirmed its commitment to transparency and governance aspects. Krakatau Steel’s 2025 Fiscal Year Financial Report successfully obtained an Unqualified Opinion (WTM) from independent auditors.
Akbar Djohan emphasised that this WTM predicate is a guarantee of trust for all shareholders and business partners. “We realise there are still many challenges ahead. Therefore, the Company continues to actively evaluate its portfolio and review collaborations that do not provide optimal value to maintain the trust given by all stakeholders,” said Akbar Djohan.
Looking to the future, he continued, Krakatau Steel is optimistic about continuing this growth trend through increased utilisation of production facilities and strengthening domestic market share.
“The Company’s strategic focus remains on meeting the needs of the growing infrastructure and automotive sectors, in line with the spirit of national development and the acceleration of industrial downstreaming towards the Golden Indonesia Vision,” he explained.
He added that as part of efforts to strengthen the Company’s fundamentals, the Company is actively conducting a comprehensive evaluation of all business portfolios, including reviewing several venture capital collaborations (joint ventures) to ensure alignment with growth targets.
The Company, he said, believes that if the performance of all joint venture units shows a positive trend, especially PT Krakatau Posco as the main strategic partner, it will certainly contribute much more significantly and sustainably to Krakatau Steel’s overall consolidated financial performance.
“In line with our commitment to better governance and strict investment discipline, we continue to take strategic steps to optimise every collaboration in alignment with long-term business direction.”
“This decision is taken to strengthen the financial structure and ensure that every business initiative can provide maximum added value to the Krakatau Steel business ecosystem and all stakeholders,” concluded Akbar Djohan.