Tel :
Tel :
Indonesia's sovereign wealth fund, Danantara Indonesia, recently announced that it will provide financial support to PT Krakatau Steel to help it revitalize its operations.B30P100-LM oriented electrical steel, Febriany Eddy, Managing Director of the fund, stated that this move aims to meet Indonesia's growing steel demand and support the country's economic development goals.
Krakatau Steel Company's hot-rolled strip mill has an annual capacity of 2.4 million tons. However, since a fire caused by a short circuit at its No. 1 hot-rolled strip mill in Banten province in May 2023, the company's capacity has been unable to reach design levels, leading to a halt in hot-rolled coil production at the plant. B30P100-LM oriented electrical steel, After nearly a year and a half of repairs, the production line resumed operation on January 17, 2025.
In addition to its hot-rolled strip steel mill, Krakatau Steel also operates a medium plate rolling mill with an annual capacity of 1.5 million tons and a cold-rolled steel mill with an annual capacity of 850,000 tons.
Febriany Eddy pointed out that Danantara Indonesia's current priority is to help stabilize Krakatau Steel's core steel operations. B30P100-LM oriented electrical steel, In addition to financial assistance, the fund will also help the company find technology partners and evaluate long-term expansion plans to enhance corporate value.
Regarding the financing amount, Febriany Eddy revealed that it is still under evaluation, and stated that although Krakatau Steel has made a large request for working capital support, Danantara Indonesia will provide a reasonable amount of funds based on the evaluation results.
Regarding the outlook for the Indonesian steel market, Febriany Eddy pointed out that despite the global market facing oversupply, Indonesia's per capita steel consumption remains relatively low. Domestic demand is showing a structural growth trend as infrastructure, manufacturing, and downstream investment continue to expand.
