Danantara Conducts Thorough Evaluation On The Body Of Krakatau Steel
JAKARTA Chief Operating Officer (COO) of Danantara Indonesia, Dony Oskaria, said that he was carrying out a thorough repair process for PT Krakatau Steel (Persero) Tbk.
Dony said the state-owned steel company would undergo improvements ranging from business models, management, to funding strategies.
"Krakatau Steel is also the same, we are also making thorough improvements to Krakatau Steel, we are reviewing its business model, competitive value and also its needs," Dony told reporters, Thursday, October 9.
Dony did not deny that Krakatau Steel bears a heavy debt burden. In addition, Krakatau Steel also experienced operational disruptions due to a factory fire last year.
Krakatau Steel utangnya cukup besar ya. Ini sedang kita lakukan restrukturisasi. dan tahun lalu juga pabriknya kebakar ya, mungkin teman-teman tahu juga dan baru aktif kembali itu Desember tahun lalu, sehingga sudah berjalan lagi sekarang 10 bulan," jelasnya.
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As a rescue measure, Danantara will inject working capital into Krakatau Steel. However, Dony emphasized that this additional capital will be followed by improving management so that funds are used effectively and productively.
"We will inject equity, work capital for them, but to ensure that this working capital is effective, of course, we will also comprehensively improve the management," he said.
"We'll see too, how they run their business so far, whoever their buyers are, what is the strength of the value proposition rather than the company. We also work on this one by one," he continued.