Encourage The National Steel Industry, Krakatau Steel Collaborates With Delong Steel Group In New Investments

Photo: Doc. Krakatau Steel

JAKARTA - PT Krakatau Steel (Persero) Tbk and Group (Krakkatau Steel Group) affirmed its commitment to supporting strategic investment in the steel industry sector by preparing more than 500 hectares of land in the Krakatau Industrial Estate, Cilegon, Banten. This land supply is aimed at facilitating large investment plans from Delong Steel Group, the world's 11th and 7th ranked steel producer in China, together with its subsidiary PT Dexin Steel Indonesia.

"This proactive step began in May 2025 when the representative team of Krakatau Steel made a visit to the Delong Steel Group in China to sign a cooperation in the procurement of raw materials and other potential cooperation as well as make visits to its Factory facilities," explained the President Director of Krakatau Steel, Akbar Djohan, in a written statement, Tuesday, June 10.

The signing of the MoU for the procurement of raw materials between the two companies was also witnessed by Mr. Ding Liguo as the chairman of Shanghai Delong Steel Group.

Then, continued Akbar Djohan, on June 3, 2025 Delong Steel Group together with PT Dexin Steel Indonesia made a return visit to Krakatau Steel in order to conduct a direct visit to the location of their new factory plan in the Cilegon Industrial Estate owned by Krakatau Steel. In addition to reviewing the location, Delegation of Delong Steel Group and Dexin Steel Indonesia also visited supporting facilities for Industrial Estates, including the existing port and Steel Factory owned by Krakatau Steel Group.

After that, the discussion process continued through a business meeting held today, Thursday, June 5, 2025, at the Krakatau Steel Building, Jakarta, between the management of Krakatau Steel Group and representatives of the Delong Steel Group. The main focus of exploring this collaboration is the construction of an Integrated Steel Factory with a production capacity of up to 3 million tons per year.

Akbar Djohan expressed his enthusiasm for this potential collaboration.

"We are very open and enthusiastic about the potential for global-scale strategic cooperation like this. The provision of land for more than 500 hectares through our subsidiary, PT Krakatau Sarana Infrastruktur (KSI), is a concrete form of our support. Collaboration with Delong Steel will not only optimize the land assets we have, but also bring technology transfer and very valuable knowledge," said Muhamad Akbar Djohan.

Delong Steel Group, as one of the giant steel industry from China, sees Cilegon as a very strategic location to become their new steel industry hub. Delong Steel management stated that Delong Steel is conducting an in-depth study and seeing Cilegon, especially the industrial area managed by Krakatau Steel, as a very strategic location and already has established facilities.

The land prepared by Krakatau Steel Group is considered very worthy to support the construction of Delong Steel's new factory. This factory is planned to produce not only high-quality steel, but also have the potential to develop green steel or environmentally friendly quality steel. The green steel concept, according to Akbar Djohan, is in line with Krakatau Steel's vision.

"Our main vision is to revitalize the national steel industry and make Cilegon an environmentally friendly barometer of the steel industry in Southeast Asia," he said.

Business negotiations between the two parties are currently underway intensively. This investment is expected to absorb thousands of local workers, have a positive impact on the national economy, increase the added value of industrial products, and strengthen the trade balance.

The provision of land by Krakatau Steel Group for Delong Steel marks a monumental step in efforts to develop a new generation of steel industry in Indonesia.

"We are not only building factories, but we aim to build a stronger and more global competitive national steel industry ecosystem so that in the future the steel industry in Indonesia will be able to support the fulfillment of the needs of the National Strategic Project," concluded Akbar Djohan.