Krakatau-Posco to Contribute 80% of RI Steel Production


The president director of state-owned steel producer PT Krakatau Steel, Irvan K.Hakim, has said the newly inaugurated integrated steel plant Krakatau-Posco will produce 3 million tons of steel per year, accounting for around 70-80 percent of Indonesia’s total steel production.

“The presence of PT Krakatau-Posco in the beginning of 2014 will be the answer to increasing domestic demand for steel,” said Irvan, on Monday, after the inauguration of Krakatau-Posco in Cilegon, Banten.

Krakatau-Posco, which was inaugurated by President Susilo Bambang Yudhoyono, is a joint venture between Krakatau Steel and South Korean steel giant Pohang Iron and Steel Company (Posco).


Irvan hoped that demand for steel from the automotive sector would increase to 20 percent from the current 7 percent, supported by growth in Indonesia’s automotive industry that used steel as a raw material.

Overall, Krakatau Steel accounts for 42 percent of the domestic market.

“Once the steel plant construction is fully completed, the market share can reach 60 percent. There is no steel factory with a market share that reaches more than 30 percent,” said Irvan as quoted by Antara news agency.

The first stage of Krakatau-Posco’s construction activity cost US$2.66 billion.

First Lady Ani Yudhoyono attended the event, along with several cabinet ministers and officials, including Industry Minister MS Hidayat, State-Owned Enterprises Minister Dahlan Iskan, and Banten Deputy Governor Rano Karno, as well as South Korea Trade, Industry and Energy Deputy Minister Kim Jundong and Posco CEO Chung Joon Yang.

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PT Krakatau Posco Is a Joint Venture Company between Krakatau Steel & Posco that have experience on steelmaker manufacturing. They synergize strengthens of both company:

I. Krakatau Steel:   (

  • No.1 Integrated Steelmaker in South East Asia
  • Integrated Up & Down stream Production Facilities
  • Cooperate with Government & local community


II. POSCO:   (

  • No.3 Steelmaker in the World
  • No.1 most competitive global steelmaker
  • World-class technology
  • Top 200 Global Companies, at rank 153rd (Forbes 2008, 2009)


PT Krakatau Posco will reach capacity total about 6 million tons/year when finish the second phase of construction at 2014. Products of the company will consist of Slab, Plate, and Hot Rolled Coil (HRC). Company will constructed on Cilegon, Banten, and will need investment about US$ 6 billion. (ebf; The Jakarta Post and other resources)


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