PT Krakatau Steel (Persero) Tbk and its subsidiaries (Krakatau Steel Group) are preparing over 500 hectares of land in the Krakatau Industrial Estate located in Cilegon, Banten. This land allocation is intended to support a major investment plan from Delong Steel Group, the world’s 11th largest steel producer and ranked 7th in China, along with its subsidiary, PT Dexin Steel Indonesia. The primary goal of the cooperation is to develop an integrated steel plant with an annual production capacity of 3 million tons.

“This strategic initiative began in May 2025 when Krakatau Steel’s representatives visited Delong Steel Group in China. During that visit, both parties signed agreements on raw material procurement and explored other potential collaborations, including a tour of Delong’s production facilities. The provision of more than 500 hectares of land through our subsidiary, PT Krakatau Sarana Infrastruktur (KSI), is a concrete form of our support. This partnership will not only optimize our land assets but also facilitate valuable knowledge and technology transfer,” explained Krakatau Steel President Director Akbar Djohan in an official statement on Monday (June 9, 2025).

As one of China’s leading steel manufacturers, Delong Steel Group considers Cilegon to be a highly strategic location for establishing their new steel production hub. The company’s management stated that Delong is currently conducting a thorough feasibility study and views the Krakatau Steel-managed industrial zone in Cilegon as an ideal site, given its well-established infrastructure.

The land allocated by Krakatau Steel Group is considered highly suitable for supporting the development of Delong’s new plant. The facility is planned not only to produce high-quality steel but also to explore the production of environmentally friendly “green steel.”

“Our core vision is to revitalize the domestic steel industry and to establish Cilegon as a benchmark for sustainable steel manufacturing in Southeast Asia,” Akbar emphasized.

Business negotiations between both parties are currently progressing intensively. The investment is expected to create thousands of local jobs, deliver a significant multiplier effect on the national economy, increase industrial value-added, and strengthen Indonesia’s trade balance.

“We are not merely building a plant — we are committed to developing a more resilient and globally competitive national steel ecosystem. This will enable Indonesia’s steel industry to effectively support the demands of National Strategic Projects going forward,” concluded Akbar Djohan.