*BUMN is Badan Usaha Milik Negara or state owned company in English
Krakatau Steel will Supply 1 Million Tons of Steel to Six BUMNs
CNN Indonesia | Friday, 23/11/2018 20:55 WIB
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Illustration of steel. (CNN Indonesia / Hesti Rika)
Jakarta, CNN Indonesia - PT
Krakatau Steel (Persero) Tbk said it was ready to supply 1 million tons of steel for six infrastructure-based State-Owned Enterprises (
BUMN ). The six BUMNs are; PT
Waskita Karya (Persero) Tbk, PT Wijaya Karya (Persero) Tbk, PT Adhi Karya (Persero) Tbk, PT Pembangunan Perumahan (Persero) Tbk, PT Hutama Karya (Persero), and PT Nindya Karya (Persero).
The plan and readiness is contained in a
head of agreement between Krakatau Steel and the six state-owned companies. Krakatau Steel's Managing Director Silmy Karim said the steel supply was for all infrastructure projects owned by the six BUMNs.
Silmy said that if later steel demand surged to two million tons more than the cooperation agreement, the company would still be able to meet those needs.
"In the next one year we will pursue one million tons for 2019, then 2020 we will try to be two million tons," Silmy said on Friday (11/23).
Silmy said generally, Krakatau Steel is capable of producing five million tons of steel annually for various sectors, such as automotive, electronics, ships and construction. Through this collaboration, it will hoist local steel absorption, especially from Krakatau Steel.
Because, the flood of steel imports affected the sale of Krakatau Steel. "This is because the rules for importing steel are too easy," Silmy said.
On the same occasion, Deputy Minister of Mining, Strategic Industry and Media of the Ministry of BUMN Fajar Harry Sampurno explained that the collaboration between Krakatau Steel and a number of BUMNs was actually not new. This collaboration is a continuation of the previous collaboration.
"I want to thank the BUMNs that show good intentions to buy domestic products, namely Krakatau Steel," Fajar said.
He admitted in a previous meeting with the Coordinating Minister for Maritime Affairs Luhut Binsar Pandjaitan regarding the use of domestic goods, the government was discussing strict sanctions on SOEs that do not use domestic products.
"For Krakatau Steel, the products must be good if they want to compete (with foreign products)," concluded Fajar.
https://www.cnnindonesia.com/ekonom...steel-akan-pasok-1-juta-ton-baja-ke-enam-bumn