Krakatau Steel Accelerates National Steel Downstreaming
PT Krakatau Steel (Persero) Tbk is optimistic that the national steel industry is moving closer to self-sufficiency amid global uncertainties. This confidence is supported by the acceleration of downstreaming, strengthening of technology, and utilisation of domestic raw materials.
Krakatau Steel’s President Director, Akbar Djohan, stated that this momentum is reinforced by the launch of Phase 2 of the National Downstreaming Project as part of the strategy to bolster national industrial resilience. The project is one of nine strategic national projects inaugurated by President Prabowo Subianto.
According to Akbar, the Krakatau Steel Group is playing a leading role through the construction of a large-capacity carbon steel slab production facility in Cilegon. The company is also developing a stainless steel slab facility in Morowali through synergies with strategic partners under the coordination of Danantara.
“Collaboration with strategic partners through the strengthening of cutting-edge technology and optimisation of local resources will enhance the resilience of the national steel industry,” said Akbar in a press release on Friday (1/5/2026).
Akbar emphasised that the utilisation of domestic raw materials is a crucial foundation in building a more competitive steel industry. According to him, dependence on foreign supplies must continue to be reduced.
“The utilisation of domestic raw materials is the main key to building an independent, efficient, and sustainable industry,” Akbar stated.
He assessed that downstreaming will also strengthen the national supply chain to be more resilient in facing global pressures, including potential disruptions to international logistics such as escalations in the Strait of Hormuz region.
The project optimisation is being carried out in the integrated Krakatau Steel industrial area in Cilegon with support from logistics and energy infrastructure. This integration is expected to increase production and distribution efficiency while boosting the competitiveness of national steel.
Through this project, Krakatau Steel also targets a gradual reduction in steel imports through the optimisation of company assets. This strategy is part of efforts to build an integrated steel industry ecosystem from upstream to downstream.
“Krakatau Steel aims to strengthen Indonesia’s position in the global supply chain while supporting sustainable industrial development. With these steps, the self-sufficiency of the national steel industry is believed to be increasingly solid and able to make a significant contribution to the national economy,” said Akbar.
Previously, President Prabowo Subianto laid the foundation stone for Phase 2 of the National Downstreaming Project in the Pertamina RU IV Cilacap refinery area on 29 April. The project includes the construction of a carbon steel slab facility with a capacity of 1.5 million tonnes per year with an investment of US$200 million, as well as a stainless steel slab facility with a capacity of 1.2 million tonnes per year in Morowali.
“Downstreaming is the main path to the prosperity of the people. Also, technological innovation, efficiency, and cross-sector collaboration for national economic progress and welfare,” said Prabowo.