Encourages The Increase In Productivity To Efficiency, Krakatau Steel For Net Profit Close To Rp1 Trillion In Semester I/2022

President Director of Krakatau Steel Silmy Karim. (Photo: Doc. Antara)

JAKARTA - PT Krakatau Steel (Persero) Tbk pede was able to print a net profit of almost IDR 1 trillion or to be precise IDR 941.4 billion in the first semester of 2022. This was driven by the company's efforts to increase its productivity in the first six months of this year.

President Director of Krakatau Steel Silmy Karim said the profit target of Rp941.4 billion increased by 89.6 percent compared to net profit in the same period in 2021, which was Rp496.3 billion.

To achieve that target, there are several supporting factors. Silmy detailed that the sales volume of Krakatau Steel products in the first semester of 2022 increased by 10.5 percent from the original 995,000 tons to 1,099,000 tons. In terms of production, it also increased by 10.2 percent from 2021 by 1,008,000 to 1,111,000.

Silmy explained that the increase in sales volume of Krakatau Steel's main product (Hot Rolled Coil and Cold Rolled Coil) was supported by the growing Krakatau Steel downstream program.

"Until the first semester of 2022, the sales volume of downstream steel products rose 206 percent to 14,400 tons. Production of ERW steel pipes also increased 21.45 percent to 15,613 tons from the previous 12,856 tons in 2021," he said in an official statement, Thursday, July 7.

Through increased productivity, said Silmy, Krakatau Steel's revenue could increase by 29.8 percent to Rp20.6 trillion in Semester I-2022 compared to the same period last year which amounted to Rp15.8 trillion. This is also supported by revenue from sales of downstream steel products which increased 179 percent to Rp218 billion from the previous year, which was Rp122 billion.

The products that were successfully sold were low-speed steel variants, metal tiles, roof KS-5, Floordeck, CNP steel, Guard Rail, and five additional downstream steel products in 2022, namely Tower steel, Cut to Length Overflow, Custom Section & Flange, Join Plate, and Mini Plate.

"Overall, until the first semester of 2022, revenue from steel piped products, construction steel, and downstream products in total increased to IDR 2.5 trillion from the previous IDR 2.1 trillion in the first semester of 2021," said Silmy.

Silmy also explained that until now the Krakatau Steel efficiency program has been carried out. In Semester I-2022, Krakatau Steel again lowered the variety cost by 7.5 percent.