Published on February 4, 2026, by Detik Finance
By Heri Purnomo
Jakarta – Danantara Chief Operating Officer (COO) Dony Oskaria said PT Krakatau Steel will have an upstream steel plant in Cilegon with a production capacity of 3 million tons per year. The plant is scheduled to break ground next month.
Dony said the construction of this new plant is done because Krakatau Steel has previously only operated in the midstream and downstream sectors, importing slabs and then processing them into steel derivatives.
“Next month, God willing, we will break ground on our upstream development. We will begin utilizing the iron ore, which is then processed into slabs and then into steel derivatives,” Dony said at the House of Representatives in Jakarta on Wednesday (4/2).
Dony said that this step is in line with plans to diversify products and strengthen the national steel industry sector, as well as improve Krakatau Steel’s performance. He hopes that Krakatau Steel will be able to supply the shipping and railway industries’ needs in the future.
“Because, with the development of our shipping industry and our railway industry, we certainly hope that all supplies will be sourced from Krakatau Steel. So, the transformation of Krakatau Steel must be carried out in an integrated manner; we can’t just give money and then leave it alone,” Dony explained.
Dony said this plan is also part of President Prabowo Subianto’s desire to ensure economic growth is driven by the industrial sector, not just by existing natural resources.
“President Prabowo wants the basis of our future economic growth to be industry. Don’t you agree? Because if a developed country doesn’t develop its industry, it will always be dependent on resources like mining and palm oil. Developed countries are based on industry, which is why Danantara is focusing on industrial development,” Dony explained.