Published on October 31, 2025, by CNBC Indonesia
By Romys Binekasari
Jakarta, CNBC Indonesia – Daya Anagata Nusantara Investment Management Agency (BPI Danantara) recently agreed to provide Rp8.28 trillion in loans to listed steel maker PT Krakatau Steel (Persero) Tbk.
Managing Director, Stakeholder Management and Communications Danantara Indonesia Rohan Hafas said Krakatau Steel is in need of improvements.
He said the steel maker has a lot of problem, therefore Danantara was completely dismantling the company to make improvements.
“It [should be] completely dismantled. It was never profitable. It was never good. It was never efficient,” he said at the Wisma Danantara Building, Jakarta, Friday (31/10).
Rohan said the company faced many problems stemming from inappropriate investments.
However, Rohan assessed that KRAS was a very large steel industry with a complete business from upstream to downstream.
“But that was over a long period of time. To make ends meet, it was dismembered, sold off its water processing facilities, and so on,” he said.
Rohan also highlighted that KRAS almost sold the port. “It almost lost its port,” he said.
According to Rohan, the port is one of the company’s main assets, as it is the deepest in Indonesia. “So very large ships can dock. That’s something that’s not available anywhere else in Indonesia,” he said.
For information, to repair KRAS, Danantara will provide a loan of Rp8.28 trillion to be used for working capital. This financial assistance is part of KRAS’s restructuring process.
In the short term, this will be met in the form of a US$250 million Shareholder Loan (PPS).
Furthermore, KRAS will apply for an additional US$500 million in other forms to complete or rescue the company’s restructuring after reaching an agreement with the banks.
The funds will be used for core operational needs, including the purchase of raw materials in the form of steel slabs for the HSM plant, hot-rolled coil (HRC) and cold-rolled full-hard coil (CRC F/H) for the CRM plant at PT KBI, HRC for the steel pipe plant at PT KPI, and derivative steel products.
Meanwhile, Danantara Chief Operating Officer Dony Oskaria stated that the funds were provided because KRAS had a significant debt burden, which was eroding its financial performance.
“The debt is quite large. We are currently restructuring it, and the factory also caught fire last year, and it only reopened in December of last year,” he said when met at the JCC Senayan Jakarta on Thursday (9/10).
However, to ensure the loan funds are used effectively, comprehensive improvements must be made.
“We will inject equity and working capital for them, but to ensure that this working capital is effective, we will also comprehensively improve its management,” he added.