Krakatau Steel Targets Revenue of Rp 20 Trillion by 2026
State-owned steel producer PT Krakatau Steel Tbk. is targeting revenue of Rp 20 trillion in 2026. Krakatau Steel’s President Director Akbar Djohan stated that this figure represents the potential revenue achievable if all production facilities operate optimally.
From a business perspective, the company aims for a net profit margin of around 10 per cent of total revenue. “If the factory operates normally, revenue could reach around Rp 20 trillion. In terms of business, we hope net profit can reach 10 per cent of revenue,” Djohan said during a media briefing at Krakatau Steel’s office in Jakarta on Monday, 27 April 2026.
In addition to core operations, he said Krakatau Steel’s financial performance is also supported by contributions from subsidiaries. However, Djohan acknowledged that several subsidiaries—particularly those in joint venture form—have yet to perform optimally.
Djohan continued, stating that these subsidiaries are still providing negative contributions to the company’s consolidation. Therefore, the company is currently focusing on internal recovery efforts, both at the parent and subsidiary levels.
These improvements include enhancing operational efficiency to evaluating the performance of joint venture companies that have not yet yielded positive results. “Subsidiary contributions are quite significant, but some are still negative. This is ongoing homework that we are addressing, both internally and externally,” he said.
Nevertheless, Djohan noted that external pressures also pose challenges to the company’s performance. The weakening rupiah exchange rate directly impacts production costs, particularly for purchasing raw materials that still rely on imports.
Additionally, rising logistics and insurance costs further add to operational burdens. Djohan explained that global geopolitical conditions are also driving up raw material prices, ultimately leading to adjustments in steel product prices.
Despite this, Krakatau Steel remains cautious in raising prices to avoid losing competitiveness in the domestic market. “This price increase is beyond our control as it is influenced by geopolitical factors. But we also cannot arbitrarily raise prices, because there is competition with cheaper imported steel, especially from China,” he stated.
In 2025, PT Krakatau recorded a net profit of Rp 5.68 trillion, with revenue reaching US$959.84 million or equivalent to approximately Rp 16.05 trillion.
From an operational standpoint, steel product sales volume reached 944,562 tonnes, an increase of 29.0 per cent compared to the previous year. Meanwhile, Krakatau Steel’s total assets were recorded at US$2.77 billion or equivalent to Rp 46.24 trillion.
Efforts to settle debt obligations resulted in a 17.04 per cent decrease in the company’s liabilities to US$2.04 billion or approximately Rp 34.11 trillion. This financial structure improvement drove a significant increase in the company’s equity. In 2025, Krakatau Steel’s equity value more than doubled to US$725.51 million or equivalent to approximately Rp 12.13 trillion.