JAKARTA - PT Krakatau Steel (Persero) Tbk (KRAS) has obtained financing support from its shareholder, PT Danantara Aset Management (Persero) or DAM, through a shareholder loan scheme (shareholder loan) worth IDR 4.9 trillion which is planned to support the restructuring process and recovery of the company's performance.
Based on information disclosure on the Indonesia Stock Exchange (IDX), the loan is intended to strengthen Krakatau Steel's liquidity position, where the use of funds is divided into two main positions, namely working capital of IDR 4.18 trillion and financing for the voluntary resignation program (golden handshake/GHS) and rehabilitation of pension funds with a value of IDR 752.8 billion.
Meanwhile, working capital funds will be used to procure raw materials for the Hot Strip Mill (HSM) plant, Cold Rolled Coil (CRM), as well as meeting the needs of the pipe plant raw materials. Meanwhile, the financing of the GHS program and the rehabilitation of pension funds will be carried out through the Lump Sum Window mechanism.
Krakatau Steel management stated that this transaction is very important to support the recovery of the steel business after the completion of the HSM repair, as well as maintaining the sustainability of the debt restructuring program which has been effective since October 2025.
"This funding support is very crucial so that operational activities can run optimally according to plan," wrote Krakatau Steel Management as quoted from the BEI Information Disclosure, Wednesday, December 24.
The restructuring plan was submitted by Krakatau Steel to BP BUMN on November 20, 2025 in accordance with the provisions of Article 72 paragraph (2) of the SOE Law. Furthermore, BP BUMN gave approval on December 2, 2025 regarding the loan transaction and guarantee for the receipt of new loans from shareholders.
Krakatau Steel then signed a shareholder loan agreement with DAM on December 19, 2025.
The total transaction value reached IDR 4.9 trillion which was divided into two periods, namely working capital loans of IDR 4.18 trillion with a minimum tenor of five years and loans of IDR 752.8 billion with a minimum tenor of six years.
Krakatau Steel management said that with this loan facility from shareholders, Krakatau Steel will have more solid liquidity so that it can carry out operational activities more efficiently.
"This condition has a direct impact on the reduction of production costs and the increase in the competitiveness of the Company's products," he added.
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