Director Of Krakatau Steel Silmy Karim Shows Off In Front Of Commission VI Of The House Of Representatives, Successfully Pays Debt Worth Rp. 3.3 Trillion

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

JAKARTA - President Director of PT Krakatau Steel (Persero) Tbk, Silmy Karim said the company's debt has been reduced by Rp. 3.3 trillion. This restructuring of obligations between issuers with the stock code KRAS and creditors is a fundamental instrument of debt reduction.

For your information, the total debt of Krakatau Steel or KRAS in the period 2019 to 2020 reached 2.3 billion US dollars. This amount is equivalent to Rp. 35 trillion.

Furthermore, Silmy explained that this debt reduction increased significantly compared to the initial restructuring carried out in January 2020.

"So we have paid more trillions of rupiah in our period of restructuring and transformation. So our debt has reduced by Rp. 3.3 trillion compared to the initial restructuring," he said during a hearing with Commission VI of the DPR RI, Monday, April 11.

Silmy explained that the reduction included debt payments to a number of creditors of US$217 million. This value does not include interest. Then, the investment debt of Hot Strip Mill II (HSM), whose current position has been paid for is approximately 15 million US dollars.

"KRAS has already paid the results of the restructuring, which was January 2020, paid 217 million US dollars, not including interest. So the interest is calculated separately, we also pay it. Then there is also HSM II's investment debt whose position has now been paid for approximately USF15 million," he said.

Krakatau Steel's debt restructuring in the 2019-2020 period amounted to US$2.3 billion or equivalent to Rp35 trillion. This amount is the highest debt value in banking restructuring in Indonesia.

"This started with the signing of the master agreement for Krakatau Steel's debt, which at that time amounted to US$2.3 billion or around Rp. 35 trillion, which at that time was the highest bank restructuring in Indonesia," he explained.

In 2019, KRAS and its subsidiaries entered into an addendum and restatement agreement for restructuring purposes. Where, KRAS and its subsidiaries conducted debt restructuring with PT Bank Mandiri (Persero) Tbk.

Then, PT Bank Negara Indonesia (Persero) Tbk, PT Bank Rakyat Indonesia (Persero) Tbk, PT Bank ICBC Indonesia, Indonesian Export Financing Agency (Indonesia Eximbank), PT Bank Central Asia Tbk.

The subsidiaries involved include PT Krakatau Wajatama, PT Meratus Jaya Iron & Steel, PT KHI Pipe Industries, and PT Krakatau Engineering.

Silmy said that with the restructuring credit agreement, the company will get a relaxation of debt payments. So that the financial burden is reduced and the tenor or loan repayment period is longer.

At the end of 2021, Silmy confirmed the company's commitment to fulfill its debt obligations to creditors. The issuer's debt payment which matured in December last year was also paid through the sale of shares in the Krakatau Sarana Infrastruktur (KSI) subholding.

Management noted that there were two bidders who had entered the price, namely from the Indonesia Investment Authority (INA) and a consortium of Asset Management Companies (PPA).

Then, the proceeds from the sale of Krakatau Sarana Infrastruktur shares were carried out to fulfill the obligation to pay working capital debts worth 200 million US dollars or equivalent to Rp. 2.8 trillion from Bank Mandiri, Bank Negara Indonesia (BNI), and Bank Rakyat Indonesia (BRI).