Minister lauds Krakatau Steel for booking Rp800 bln in profit

Minister lauds Krakatau Steel for booking Rp800 bln in profit

State-Owned Enterprises Minister Erick Thohir speaks at the inauguration of a new factory of PT Krakatau Steel in Cilegon, Banten on Tuesday (September 21, 2021). (ANTARA/Mulyana/my)

Currently, PT Krakatau Steel, which has lost performance for the last eight years, has now made a profit of Rp800 billion (around US$56 million)
Cilegon (ANTARA) - State-Owned Enterprises Minister Erick Thohir has praised PT Krakatau Steel for improving its performance and recording a profit of Rp800 billion (around US$56 million) after reporting losses for eight consecutive years.

"Currently, PT Krakatau Steel, which has lost performance for the last eight years, has now made a profit of Rp800 billion (around US$56 million)," Thohir noted at the inauguration of the HSM 2 steel plant of Krakatau Steel by President Joko Widodo in Cilegon on Tuesday.

He said the success of Krakatau Steel cannot be separated from efforts to transform and restructure state-owned enterprises, in accordance with President Joko Widodo's directives to improve their performance.

Of the three stages of restructuring prescribed for Krakatau Steel, stage one and stage two have so far been completed, he observed.

"However, I ask the management of PT Krakatau Steel not to be complacent, because it is important to continue to improve the performance of PT Krakatau Steel," the minister remarked.

Thohir lauded the management of Krakatau Steel for continuously trying to improve the company's performance and finally managing to turn the tide.

He also reported the efforts made towards the transformation and restructuring of state-owned enterprises done by the ministry and the successes achieved amid the COVID-19 pandemic.

Related news: President Jokowi inaugurates Krakatau Steel's Hot Strip Mill 2 factory

The restructuring and transformation have been carried out to increase accountability, professionalism, competitiveness, and public services, he said.

"In 2020 we gave a profit of Rp375 trillion (around US$26 billion) for the state and we will continue to increase it gradually," Thohir added.

Efforts to transform and restructure state-owned enterprise have included the merging of three Himbara banks into Bank Syariah Indonesia (BSI) as an Islamic finance alternative, the establishment of a holding company at PT Pertamina, and the successful restructuring of PTPN, whose profits were increasing, as well as PT Krakatau Steel, he informed.

President Joko Widodo inaugurated the Hot Strip Mill (HSM) 2 on the PT Krakatau Steel Industrial Estate in Cilegon on Tuesday.

He was accompanied by Thohir, House Speaker Puan Maharani, Coordinating Minister for Investment and Maritime Luhut Binsar Pandjaitan, Investment Minister Bahlil Lahadalia, State Secretary Pratikno, Banten Governor Wahidin Halim, and PT Krakatau Steel President Director Silmy Karim.

The new 25-hectare factory will produce 1.5 million tons of Hot Rolled Coil (HRC) per year at an investment value of Rp7.5 trillion (around US$526 million).

President Jokowi and House Speaker Puan Maharani inaugurated the factory with the pressing of a button, which was followed by the signing of the inscription of the factory.

Related news: Jokowi urges ministers to support steel and iron industries

 

 

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