Krakatau Steel Strengthen KIK as the Center of the National Economy

JAKARTA - PT Krakatau Steel (Persero) Tbk (KRAS) reiterated its commitment to strengthen the position of the Krakatau Industrial Area (KIK) as the epicenter or center of national economic growth.

Krakatau Steel President Director Akbar Djohan said that through the 2026 Krakatau Industrial Business Gathering, this strategic step was taken to capture global investment opportunities and encourage the transformation of the region into a special economic zone (KEK).

"As the host of an industrial area, the Krakatau Steel Group will continue to provide fast, transparent, and easy investment services for tenants and investors. Collaboration is the key to building a competitive industrial area," he said, quoted by Antara.

In line with President Prabowo's message at the 2026 World Economic Forum in Davos, Switzerland, regarding the importance of stability and a strong industrial ecosystem, he continued, the company is committed not only to strengthening the core steel business, but also to building a sustainable and globally competitive integrated industrial ecosystem.

"Krakatau Steel's spirit to go global is becoming more real. After strategic partnerships with South Korea and Japan, Chinese investors have now joined in building a plastic ore facility in Cilegon," he said.

In the near future, added Akbar, who is also Chairman of the Indonesia Iron & Steel Industry Association (IISIA) and Chairman of the Indonesian Logistics & Forwarder Association (ALFI/ILFA), the investment in EV truck factories and other strategic projects will soon follow.

He said the Krakatau Industrial Business Gathering 2026 forum was a strategic step for the company in building a competitive industrial area ecosystem, adapting to global dynamics, and strengthening collaboration to capture new investment opportunities.

Krakatau Steel, according to him, is actively encouraging the transformation of the Krakatau Industrial Area into a special economic zone (KEK).

This status of the KEK is believed to provide significant fiscal incentives, tax facilities, customs facilities, and licensing simplification for investors.

"Through the strengthening of this integrated manufacturing infrastructure, the Krakatau Steel Group plays an active role in supporting President Prabowo Subianto's Astacita agenda, as an effort to transform the structure of Indonesia's economy to be more productive, inclusive, and competitive globally," said Akbar.

On that occasion, the Minister of Tourism and Creative Economy for the period 2020-2024 Sandiaga Salahuddin Uno, who was present as the main speaker, encouraged the optimism of tenants at KIK.

Sandiaga emphasized that Indonesia's economy remained solid with growth above 5 percent, increasing the competitiveness of industrial areas to be a key factor that opens up wider investment space.

"Industrial areas are the engine of national economic growth that contributes significantly to GDP, employment, and non-oil and gas exports. With the condition of the manufacturing PMI being expansive in 2026, this is not the time to wait and see, but the right moment to be the first mover in investing," he said.

Furthermore, he emphasized that the future of industrial areas lies in the integration of the concept of Special Economic Zones (SEZ) and Green Economy, where renewable energy support, efficient logistics connectivity, and the principle of sustainability are absolute requirements to attract global investors.

"Sustainability must be a business value added. Through innovation, adaptation, and collaboration, industrial areas can transform into a superior ecosystem that not only attracts quality investments, but also strengthens the national export base," said Sandiaga Uno.