Equivalent to IDR 3.3 Trillion, Krakatau Steel Pays Debt to Commerzbank AG 216 Million US Dollars

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

JAKARTA - PT Krakatau Steel (Persero) Tbk paid off a total debt of 216.02 million US dollars or equivalent to IDR 3.3 trillion to Commerzbank. The debt payment was made by the company on October 12, 2022.

Commerzbank AG is the second largest bank in Germany. The bank is Krakatau Steel's creditor in building the 2nd Hot Strip Mill (HSM2) factory.

President Director of Krakatau Steel, Silmy Karim, explained that the repayment of all outstanding loans to Commerzbank AG is part of the company's strategy going forward in strengthening its core business.

"Krakatau Steel has paid a total of 487.7 million US dollars or IDR 7.4 trillion in the last 2.5 years since the start of the restructuring process", he said in Jakarta, Friday, October 14.

The details of Krakatau Steel's debt payments that have been paid in the period from 2020-2022 consist of Tranche A's debt of 27.7 million US dollars, Tranche B of 200 million US dollars, and a loan to Commerzbank AG of 260 million US dollars.

Silmy emphasized that starting from 2020 the trend of improving Krakatau Steel's performance is getting better from time to time. Krakatau Steel will continue to maintain this consistency by becoming more competitive.

"Also increasing sales by maximizing their potential and capabilities", he said.