Krakatau Steel Continues Transformation in 2026 to Strengthen Restructuring
JAKARTA - PT Krakatau Steel (Persero) Tbk/Krakatau Steel Group, in welcoming 2026, carried out restructuring to continue the company's transformation which was considered successful during 2025.
President Director of PT Krakatau Steel Akbar Djohan stated that the company's performance and transformation steps were in line with President Prabowo Subianto's Astacita, especially in strengthening the national strategic industry.
"The success of the restructuring reflected in profits, increased production and sales, and strengthening the financial structure is an important foundation for Krakatau Steel to contribute more to realizing the independence of the national steel industry. This transformation we carry out is disciplined and sustainable," he said, quoted by Antara.
Various performance achievements during 2025, he continued, showed the strengthening of the company's fundamentals and the company's readiness to enter a phase of sustainable growth.
The company recorded net profit of US$24 million in the third quarter of 2025, reflecting the positive momentum from the effectiveness of liability restructuring and operational efficiency improvement.
In terms of efficiency, the company managed to reduce its operating costs by 12 percent to the third quarter of 2025 compared to the same period last year.
This effort is part of a sustainable transformation to create a healthier and competitive cost structure.
In terms of operations, the stabilization of the plant showed positive results, namely the consolidated steel production volume until the third quarter of 2025 was recorded at 740 thousand tons, an increase compared to the same period in 2024 of 540 thousand tons.
In line with the increase in production, the company's consolidated steel sales volume also showed an upward trend throughout 2025, namely 226 thousand tons in the first quarter, to 244 thousand tons in the second quarter, and 269 thousand tons in the third quarter.
"This trend reflects the increasing market confidence and the strengthening of Krakatau Steel's role in meeting national steel needs," said Akbar, who is also Chairman of the Indonesian Iron & Steel Industry Association (IISIA) and Chairman of the Indonesian Logistics & Forwarder Association (ALFI/ILFA).
In welcoming 2026, he added, the company views market dynamics as part of a cycle that continues to be managed prudently.
With the business fundamentals continuing to improve, the company is optimistic that it can manage the company on a consolidated basis with an asset value of 825.3 million dollars, supported by operational and financial performance throughout 2025 which shows a trend of continuous recovery and strengthening.
According to Akbar, the success of the transformation and positive performance of Krakatau Steel is inseparable from the support of Danantara as a Series B shareholder, which is realized through the provision of Shareholder Loans (PPS) to meet the working capital needs of operating the hot strip mill (HSM) and cold rolling mill (CRM).
The support of Danantara, he added, is an important factor in maintaining operational continuity, strengthening liquidity, and supporting the implementation of the company's efficiency program, so that Krakatau Steel can focus on implementing the agenda of transformation and strengthening business competitiveness sustainably.
Meanwhile, in the extraordinary general meeting of shareholders (RUPSLB) of Krakatau Steel, the company's latest board of directors was set, namely the Chairman of the Board of Commissioners Hendro Martowardojo, Independent Commissioner Willgo Zainar, Independent Commissioner David Pajung, Independent Commissioner Diarta and Commissioner Adityo Haryo Bimo.
Meanwhile, the board of directors are President Director Akbar Djohan, Financial and Risk Management Director Daniel Fitzgerald Liman, Commercial, Business Development, and Portfolio Director Hernowo, Human Resources Director Suryantoro Waluyo, and Infrastructure and Operations Director Sidik Darusulistyo.