Erick Thohir Shows Off In Front Of Jokowi: Krakatau Steel Succeeds In Earning IDR 609 Billion Profit After 8 Years Of Suffering Loss

Minister of SOEs, Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - SOE Minister Erick Thohir showed off the performance of PT Krakatau Steel Tbk in front of President Joko Widodo (Jokowi). The state-owned steel producer company was able to reap a profit of IDR 609 billion in the second quarter of 2021 compared to the record loss in the last 8 years.

"So far, Krakatau Steel has lost for the last eight years, now it has made a profit", Erick told Jokowi during the inauguration ceremony of the Krakatau Steel factory in Cilegon, Banten, Tuesday, September 21.

Erick explained that the profit earned by the issuer codenamed KRAS was the result of the restructuring policy implemented by the Ministry of SOEs. This restructuring consists of three stages, two of which have been completed.

Although he has "recovered", Erick still asks the commissioners and directors of Krakatau Steel not to be complacent. Because after all, according to him, any state-owned company needs to continue to improve performance.

Erick also reported to Jokowi that restructuring was not only applied to Krakatau Steel, but also other SOEs, such as PT Perkebunan Nusantara (Persero) aka PTPN. The BUMN in the plantation sector has also succeeded in reversing the financial condition from loss to profit.

According to Erick's notes, PTPN managed to collect a profit of IDR 2.3 trillion until the end of August 2021. In fact, the company originally targeted its financial condition this year to lose at least IDR 1.4 trillion because in the previous year it still recorded losses.

"This PTPN's sales have increased by 37 percent, from this year's target of IDR 1.4 trillion. Last August I checked, Mr. and I make sure, that the profit is already IDR 2.3 trillion", he said.