Krakatau Steel Successfully Restructuring IDR 35 Trillion Debt, Silmy Karim: Highest In Indonesian Banking History

Silmy Karim. (Photo: Savic Rabos, DI: Raga/VOI)

JAKARTA - PT Krakatau Steel Tbk has restructured its debt for the 2019-2020 period of US$2.3 billion or equivalent to Rp35 trillion. This amount is claimed to be the highest debt value in banking restructuring in Indonesia.

This was confirmed by the President Director of Krakatau Steel, Silmy Karim, during a hearing (RDP) with Commission VI of the Indonesian House of Representatives as a working partner, Monday, April 11.

"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 Rp35 trillion, which at that time was the highest bank restructuring in Indonesia," said Silmy.

In 2019, the issuer with the stock code 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.

With the restructuring credit agreement, said Silmy, 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 also 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.

The 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).

On this occasion, Silmy said that KRAS has made a profit in the last two years after 8 years of losses. EBITDA value reached the highest value.

"The revenue is 2.1 US dollars in 2021 audited. The EBITDA is also 126 million US dollars and the profit is 62 million US dollars. If we convert it to 2.1 billion US dollars, our sales will reach 31 trillion rupiah," he said.