**North Jakarta**: PT Krakatau Steel is implementing strategic initiatives to strengthen its position in the steel industry, focusing on collaboration with subsidiaries and partners. Recent exports to the US highlight the company’s commitment to boosting the national steel framework and addressing challenges in global trade.
PT Krakatau Steel (Persero) Tbk is actively pursuing strategic initiatives to navigate the complexities of global trade and enhance its competitiveness in the steel industry, particularly in the downstream sector. As the global trade landscape continues to face challenges, the company is focusing on strengthening synergy and collaboration with other steel producers.
On February 25, 2023, in an event at the Port of Tanjung Priok, North Jakarta, the President Director of PT Krakatau Steel, Muhamad Akbar Djohan, announced significant steps being taken to bolster the national steel industry framework. He noted that as a state-owned entity, Krakatau Steel aims to encourage its subsidiaries, including PT Krakatau Baja Industri (KBI), to collaborate with counterparts in the steel sector. This initiative aligns with the downstream programme and sustainable industry initiatives put forward by President Prabowo Subianto.
During this event, Akbar highlighted the success of exporting 5,000 tons of coated steel products, namely Nexalume, Nexium, and Nexcolor, developed through a partnership between KBI and PT Tata Metal Lestari (part of the Tatalogam Group). He remarked, “What we are doing today by exporting to the US is not trivial. Honestly, our steel industry is not in good condition. But with the export conducted by PT Tata Metal today, it sends a very clear and concrete message that our national steel products are still highly regarded in the global market.”
The export of coated steel to the United States is indicative of the strong collaboration between KBI and Tata Metal, which has managed to overcome the hurdles posed by current global uncertainties. Akbar further expressed a commitment to managing national stakeholders and engaging regulators to ensure support for domestic steel products through protective measures and regulations.
Arief Purnomo, the President Director of KBI, shared insights into the company’s production capabilities, stating that KBI has an annual production capacity of up to 90,000 tons of coated steel with 60 percent domestic content. Arief explained the importance of a robust downstream steel industry, noting that vulnerabilities exist due to the influx of imported products that impact upstream production. He stated, “Our hope is that the downstream steel industry continues to grow, supported from the upstream. Therefore, all industrial strengths, especially steel in Indonesia, from upstream to downstream, must be strengthened.”
Stephanus Koeswandi, Vice President of PT Tata Metal Lestari, expressed gratitude for the collaborative effort between Krakatau Steel and KBI. He acknowledged that such partnerships have revitalised the downstream sector, enabling it to enhance quality and competitiveness within both local and international markets.
Overall, Krakatau Steel’s strategic focus on collaboration and synergy in the steel industry illustrates a proactive approach to addressing the challenges posed by global trade dynamics while aiming to uplift the national steel ecosystem.
Source: Noah Wire Services
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