Steel Industry Synergy Supports National Manufacturing Sector Demand
PT Krakatau Steel (Persero) Tbk/Krakatau Steel Group (KRAS) has strengthened the synergy of the domestic steel industry by signing a long-term supply agreement (LTSA) with PT Kerismas Witikco Makmur and its affiliated companies. The collaboration focuses on meeting demand for cold rolled coil (CRC) and hot rolled pickled oil (HRPO) steel products, totalling 36,000 tonnes over the next year.
The strategic commitment was signed by Hernowo, Director of Commercial, Business Development and Portfolio at PT Krakatau Steel (Persero) Tbk, and Lau Beng Sing, President Director of PT Kerismas Witikco Makmur Group. Through this agreement, Krakatau Steel guarantees stable supply of CRC and HRPO products to support smooth production operations across all Kerismas Group business units, including PT Kerismas Witikco Makmur, PT Tumbakmas Inti Mulia, PT Semarang Makmur, and PT Poli Contindo Nusa.
Hernowo stated that this step represents a concrete manifestation of the company’s commitment to maintaining the domestic steel industry ecosystem. Previously, in February 2026, Krakatau Steel formalised a similar partnership with PT Fumira, committing to supply CRC products with a minimum volume of 3,500 metric tonnes per month throughout 2026. This series of long-term partnerships reaffirms the company’s strategic position as a primary supplier supporting the raw material needs of Indonesia’s manufacturing industry.
Hernowo explained that the successful signing of this LTSA was driven by working capital support from Danantara. This support was specifically allocated to secure continuous availability of raw material, which forms the foundation for Krakatau Steel’s production of high value-added steel products. “The working capital support from Danantara is the primary driver in ensuring our raw material supply chain remains secure and stable. With guaranteed upstream material availability, we can provide supply certainty to our loyal partners,” he stated on Monday, 16 March 2026.
Hernowo added that this supply stability will have a direct impact on partner performance in the market. “Through the supply of high-quality CRC and HRPO products, we are optimistic that Kerismas Group can continue improving operational efficiency and product competitiveness, both to meet domestic market needs and expand into international markets,” he concluded.
Furthermore, strengthening raw material availability represents a concrete implementation of the government’s Asta Cita pillars, particularly in accelerating downstream development of the domestic industry. By ensuring steel raw materials are available domestically, Krakatau Steel actively plays a role in creating a self-sufficient and highly competitive industrial ecosystem.
“We are aligning company operations with the Asta Cita vision to strengthen economic sovereignty through downstream development. Through raw material supply guarantees supported by Danantara, we ensure that the full value-added benefit is enjoyed by national industry and workforce,” Hernowo added.
In agreement, Lau Beng Sing welcomed the collaboration as the foundation for operational stability of the group. “We appreciate the continued support from Krakatau Steel. The guarantee of raw material supply is crucial for the continuity of production within our group so we can focus on market development and final product quality for consumers,” he stated.
This step aligns with efforts to strengthen the structure of the domestic steel industry and the import substitution programme, prioritising the use of local steel products among Indonesian manufacturers. Through this partnership, both parties have agreed to continue synergising to face global steel industry challenges and make concrete contributions to national economic growth.