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JAKARTA - SOE Minister Erick Thohir believes that PT Krakatau Sarana Infrastruktur (KSI), as a newly inaugurated subsidiary of Krakatau Steel, can optimize the business performance of the SOE.

"I support the establishment of the Infrastructure Facilities Subholding as part of the transformation of Krakatau Steel to increase value and optimize company performance. For example, the potential for the Hot Strip Mill #2 Krakatau Steel factory which has a production capacity of 1.5 million tons per year as well as other business units," he said. Erick Thohir in a release received in Jakarta, quoted from Antara, Thursday 15 July.

As is known, KSI, which was just inaugurated by the Minister of SOEs, was previously known as PT. Krakatau Industrial Estate Cilegon (KIEC) and is now the Subholding parent of PT Krakatau Daya Listrik (PT KDL), PT Krakatau Tirta Industri (PT KTI), and PT. Krakatau Bandar Samudera (PT KBS).

As a company with the main business field of managing industrial estates, KSI's main compensation is to provide and manage industrial estates with complete and integrated services, such as regional infrastructure and utilities which include ports, roads, electricity, water and gas, as well as other supporting facilities such as hotels, public facilities. housing and more.

In addition, this integration and completeness is what KSI offers through “An Integrated Investment Solution” to support business development and attract investors.

"This subholding must also be able to take advantage of investment opportunities to Indonesia that require industrial estate support with integrated facilities and international standards," said Erick.

The KSI subholding, which has the largest area management area in Indonesia, will be engaged in integrated industrial estate services with four main areas, namely industrial areas, energy supply, industrial water supply, and ports.

President Director of Krakatau Steel Silmy Karim said the subholding of infrastructure facilities has a strong financial foundation.

He explained that the four companies had a total revenue of IDR 3.4 trillion and an EBITDA value of IDR 1 trillion in 2020. It is hoped that the overall business achievement target will continue to grow in line with the growing demand for industrial estates in Indonesia.

"The Krakatau Steel Infrastructure Subholding is projected to generate revenue of up to Rp. 7.8 trillion in the next five years. Meanwhile, the EBITDA of the infrastructure facilities subholding is projected to increase to Rp. 2.2 trillion in 2025," he said.

Meanwhile, the President Director of PT Krakatau Sarana Infrastruktur, Priyo Budianto, is of course proud and welcomes the formation of this subholding. Priyo hopes that with this synergy, the achievement of the projected target within the next five years can be achieved well in accordance with the message conveyed by the Minister of SOEs and also the President Director of Krakatau Steel.

"The establishment of the KSI subholding is a challenge and a new spirit for us to make a more positive contribution to industrial development in Indonesia and I believe all the planned targets can be achieved according to the direction and expectations of the Minister of SOEs and also Mr. Silmy Karim," said Priyo.


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