Krakatau Steel Partners with Attorney General's Office to Strengthen Corporate Governance
Jakarta (ANTARA) - PT Krakatau Steel (Persero) Tbk/Krakatau Steel Group is strengthening its commitment to legal certainty and good corporate governance through a collaboration with the Deputy Attorney General for Civil and Administrative Affairs (Jamdatun) at the Attorney General’s Office.
According to Krakatau Steel President Director Akbar Djohan, the move serves as a risk mitigation strategy amid the major transformation of state-owned enterprises (SOEs) under the Danantara Investment Management Agency, as well as the implementation of national downstream processing projects and the realisation of Good Corporate Governance (GCG) in managing both operational and investment activities.
The collaboration with Jamdatun, he continued in a statement in Jakarta on Monday, provides legal assistance and legal opinions required in every strategic decision-making process, to ensure all corporate measures comply with prevailing laws.
“This step will boost investor and business partner confidence whilst ensuring Krakatau Steel’s transformation proceeds sustainably to realise a nationally competitive steel industry on the global stage,” he said.
He described professional legal assistance as an inseparable part of strengthening the company’s fundamentals under the “KS Reborn” programme. The dynamics of civil and administrative law accompanying business aspects demand well-considered risk mitigation.
Akbar added that as part of the “Indonesia Incorporated” vision, Krakatau Steel has received working capital support of US$295 million, equivalent to Rp4.96 trillion, from Danantara under very strict mechanisms.
“These funds are not state capital injection (PMN), but rather working capital loans whose allocation is locked solely for the purchase of factory raw materials, not for other purposes. This is a form of transparency and accountability that we are implementing together with Danantara,” he said.
Regarding the downstream processing of two strategic commodities — iron sand and nickel ore (construction of a stainless steel plant) — with an estimated investment of Rp30 trillion, he stated this is not merely an additional project but a golden opportunity for the company to make a major leap from being a conventional steel producer to becoming a key player in the global strategic industry supply chain.
Therefore, Akbar affirmed that the synergy with Jamdatun is a proactive step by the company to ensure every strategic investment measure is achieved accountably, whilst simultaneously establishing governance practice standards for the success of strategic SOE projects in the future.
Previously, on Wednesday (11 February), a cooperation agreement was signed between the Deputy Attorney General for Civil and Administrative Affairs (Jamdatun) R. Narendra Jatna and Krakatau Steel President Director Akbar Djohan.