Krakatau Steel Hard To Maintain Profit In The Second Quarter

JAKARTA - PT Krakatau Steel (Persero) Tbk stated that in the second quarter of 2020 the company could not make a profit like in the first quarter which made a profit of Rp1.1 trillion. This is because of the impact of the COVID-19 pandemic. The company, with the issuer code KRAS, had previously lost money for eight years.

"In the second quarter, it is quite hard for us to be able to maintain profits because the drop is too far and this is a fact in almost all businesses, but we hope it will not drag on," President Director of PT Krakatau Steel (Persero) Tbk, Silmy Karim in the discussion. virtual, Wednesday, June 24.

Silmy hopes that in the third and fourth quarters the situation will improve. So that programs that have been planned by the directors can generate benefits and the company can return to generate profits.

"Quickly and profits are not impossible for Krakatau Steel," he said.

Silmy explained that in the future the company will make efficiency. One of the ways is by reducing 25 percent of initiatives to reduce costs.

"From there, we can make savings, saving, our choice is to reduce the selling price to make it more competitive or we use it to improve or strengthen what we have now margin than Krakatau Steel," he said.

Silmy said, to change the situation from losing money to making a profit, companies must fulfill two things, namely in the context of human resources (HR) and culture or work systems.

Furthermore, he explained, currently digitalization has been implemented at Krakatau Steel, where directors can monitor the company's development with technology, both in terms of production, costs and so on in real time.

"We have a War Room and can be accessed on a device or cellphone rather than Krakatau Steel's management to see developments. We want to know, for example, the debt from one of our customers, we can find out how the KPI of one of our subordinates," he explained.

According to Silmy, with digitalization, management can instantly find out about today's shipments and don't have to wait for a week or even a month.

Furthermore, Silmy said, with this system, making decisions and anticipating problems at Krakatau Steel would be faster. This system change also affects all organizations in the company.

"This is transparent, because one of the keys to a modern organization is transparency. In the context of good corporate governance, we enforce it, we are even the first to implement ISO 37001, so we continue to push it there," he said.

In the company organization, Silmy said, Krakatau Steel has 60 subsidiaries, where currently his party is in the stage of evaluating the subsidiaries. Meanwhile, five subsidiaries are currently in the process of liquidation, because the company has to cover up potential waste.

"For example, investments in the past that have not yielded benefits for now are even burdensome, this must be decided. There are consequences, this requires courage, it requires support from ministries, law enforcement, and so on to comply with the rules of the game," he explained.