DIGIVESTASI - The losses incurred by PT Krakatau Steel (Kras) are the responsibility of the Minister of State-Owned Enterprises (BUMN), Erick Thohir. Managing Director of PEPS (Political Economy and Policy Studies), Anthony Budiawan, emphasized that the issue of Krakatau Steel’s losses is the government's responsibility.

“This is an issue for everyone, from the directors, the Minister of BUMN, to the Ministers of Finance and Trade, who are related to tariffs and international trade,” Anthony told RMOL News Agency in Jakarta on Sunday (7/7).

The performance of PT Krakatau Steel Tbk has continued to decline, with the steel issuer being burdened by debt due to a sharp drop in the company’s revenue.

According to the company’s financial report for the first quarter of 2024, Kras’s revenue fell by 66.4 percent to USD 231.79 million, equivalent to Rp 3.79 trillion.

The loss for the period attributable to the owners of the parent entity also increased by nearly 60 percent, reaching Rp 462.58 billion, compared to USD 18.27 million in the first three months of last year.

Throughout 2023, Krakatau Steel recorded a net loss of USD 130.21 million, whereas the previous year the state-owned issuer had still posted a net profit of USD 19.47 million.

According to the financial report published by the Indonesia Stock Exchange (IDX), Kras’s total revenue for the 2023 Fiscal Year was only USD 1.45 billion, down 35.27 percent compared to the previous year’s USD 2.24 billion.

In terms of debt, as of March 2024, Krakatau Steel recorded liabilities of USD 2.33 billion, with long-term loans maturing within one year amounting to USD 1.36 billion, equivalent to Rp 21.5 trillion.

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