Krakatau Steel sees state fund take charge

Upstream capacity: Workers go about their duties at the Tanjung Priok International Export-Import Port in Jakarta. Krakatau Steel has secured a US$295mil shareholder loan from Danantara to bolster working capital and support a restructuring plan. — AFP

JAKARTA: Publicly listed state-owned steelmaker PT Krakatau Steel has revealed that state asset fund Danantara was stepping in as the main investor for a new steel plant set to break ground in March this year, signaling a U-turn from a potential joint partnership with a Chinese investor.

Hernowo, Krakatau Steel’s commercial, business development and portfolio director, said the company was originally eyeing potential investment from China to shore up its weak financial capacity.