Supporting Industry (the mother of industry)
Krakatau steel is able to produce military grade steel
Jakarta (17/03) – Representing Plt Katimlak KKIP, Head of Planning for KKIP Rear Admiral TNI (Purn) Darwanto, MAP, with Plt. Deputy for Politics, Law, Defense and Security of Bappenas, Dr. Slamet Soedarsono, MPP, QIA, CRMP, CGAP, CACP carried out a working visit to PT. Krakatau Steel, in Cilegon, Banten, last Wednesday, March 15.
In the group, the Head of Technology Transfer and Offset Dr. Yono Reksoprodjo, Korsahli KKIP Rear Admiral TNI (Purn) Dr. Mulyadi, KKIP Research and Development Expert Staff Dr. Prof. Colonel Chk Heru Eko Budi Susilo, SH, and secretariat staff M. Idhan Chaer.
The delegation was received by representatives from the research and human divisions of PT. Krakatau Steel. In his opening explanation, representatives of PT. Krakatau Steel stated that PT. Krakatau Steel is committed to increasing TKDN (local content) by implementing various steps such as certification and research on substitute products for imported steel products.
Dr. Slamet Soedarsono, who is also the Head of KKIP Funding and Financing, explained that his visit departed from the reality that the use of imported steel is still rife in defense industry products.
This has an impact on the TKDN value of downstream products of the defense industry (alutsista) which is not encouraging.
He stressed that steel production capability is a reflection of the country's strength. Therefore he emphasized the need for independent mastery of technology.
Krakatau Steel is known to have diversified its business fields, which include industrial steel, construction steel, industrial water, industrial pipe, to electric power.
In the defense sector,
this largest steel company in Indonesia has become a supplier of raw materials for bailey bridges, infrastructure development for headquarters/posts/barracks, and warship hulls.
In the future, it is targeted to be able to supply raw materials for ranpur/rantis bodies(Armor Plating for Armored Vehicle), gun barrels, RPS nozzles, and RPS casings.
The KKIP delegation highlighted foreign steel which is more competitive in terms of price and stock availability. As a result, a number of defense industries are still importing steel plates from other countries such as Singapore which has stock for purchase in limited quantities.
Under these conditions, it is difficult for the domestic defense industry to meet the minimum TKDN value threshold emphasized by the government for defense and security personnel procured from within the country.
Krakatau Steel responded that compensating for the defense industry's insignificant business value is not easy, especially when it comes to providing new infrastructure.
Nevertheless, PT. Krakatau Steel claims that it is currently trying in stages to be able to play a bigger role as a tier-4 (raw material producer) for the defense industry.
This year's KKIP Funding and Financing sector has an agenda to review the TKDN values and calculations at each tier/level of the defense industry. Previously, Mr. Slamet also made a visit with a similar agenda to PT. Pindad and PT. Infoglobal.
The government has recently intensified the Increase in Use of Domestic Products (P3DN) to suppress imports and advance the domestic industrial ecosystem.
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