PT Krakatau Steel (Persero) Tbk, the largest steel manufacturer in Indonesia, is preparing to start construction on an IDR 30 trillion integrated steel project in Cilacap. The project focuses on carbon and stainless steel production to reduce reliance on imported materials.

President Director Akbar Djohan said that carbon steel operations will utilize domestic iron ore, while stainless steel plants will be situated near nickel resources to optimize the supply chain.

Supported by a government mandate, this initiative aims to strengthen the national industrial base against global disruptions. To prepare for these operations, the company secured IDR 4.93 trillion in shareholder loans from PT Danantara Asset Management late last year. These funds cover essential working capital and pension recovery programs.

Construction of the new industrial ecosystem is expected to take at least one year.