Krakatau Steel Strengthens Business Foundations with Long-Term Supply Commitment and Strategic Synergies

Jakarta – PT Krakatau Steel (Persero) Tbk (KRAS)/Krakatau Steel Group is starting 2026 by strengthening a solid business foundation through long-term strategic agreements. The company signed an agreement to fulfill the supply of Cold Rolled Coil (CRC) steel products with PT Tata Metal Lestari of 10 kilo tons per month for one year. This concrete step is not just a transaction, but is a reflection of Krakatau Steel Group’s operational strength and business strategy in building certainty and stability in the national supply chain.

Agreement
Long Term Supply Agreement (LTSA) it reflects strength positioning
Krakatau Steel Group is a key player in the national upstream steel industry.
This commitment creates a solid business foundation predictablesupport
operational efficiency, and strengthening an integrated industrial structure. Matter
This is important capital for the Company to remain competitive in the market
fluctuating global market dynamics.

“For Krakatau Steel, LTSA is not just about talking about things
sales volume, but about building a healthier industry structure.
When national upstream and downstream producers strengthen each other, there will be resilience
“domestic industry will become more solid,” said Dr. Akbar Djohan, who also
serves as Chairman of the Indonesia Iron & Steel Industry Association
(IISIA) and Chairman of the Indonesian Logistics & Forwarders Association (ALFI/ILFA).

Krakatau Steel’s business strength is also supported by synergy
sustainable with downstream partners such as Tata Metal Lestari, which has
previously established. This collaboration has been proven to produce export performance
which is something to be proud of, including penetrating the United States market with a total of 15,000
tons in the period February and September 2025. This success is proof
It is clear that Krakatau Steel products have met global quality standards and
managed with a competitive business model.

More broadly, these long-term business commitments are aligned
with the government’s vision to accelerate downstreaming and industrialization. With
increasingly stronger business foundation through strategic partnerships, Krakatau Steel
ready to contribute more in strengthening national industrial resilience and
supports Indonesia’s economic growth targets.

Director of Commercial, Business Development and Portfolio PT
Krakatau Steel (Persero) Tbk, Hernowo stated that the collaboration between
Krakatau Steel Group and PT Tata Metal Lestari are not a collaboration
First. Partnership relationships that have previously existed become the foundation
important for strengthening the national steel industry ecosystem, especially in
encouraging the use of domestic steel products and increasing added value
downstream industry.

“And this synergy also shows the second consistency
companies in building long-term trust-based collaboration,
in line with the national industry’s need for a stable steel supply and
quality,” continued Hernowo.

Track Record
Global: Penetrating the United States Market

Previously, Krakatau Steel Group together with PT Tata Metal
Lestari has demonstrated its industrial capabilities through exports of steel products
layers to the United States of 10,000 tons in September 2025 and 5,000 tons
in February 2025.

This achievement is proof that the steel industry
Indonesia is able to compete in the market with a high level of protection. Success
penetrating the United States market confirms that Krakatau Steel Group products
meets global quality standards and can be accepted by international markets.

Acceleration
National Industrialization

This strategic collaboration is in line with Asta Cita
The President of the Republic of Indonesia, Prabowo Subianto, especially in encouraging downstream and
domestic industrialization. With the national steel industry becoming increasingly solid,
This collaboration is expected to strengthen the foundations of the national economy and
contribute to Indonesia’s economic growth target of up to 8%.

For information, the signing of the LTSA was carried out
by the Director of Commercial, Business Development and Portfolio of Krakatau Steel,
Hernowo, and President Director of PT Tata Metal Lestari, Stephanus Bagus Pambudi
Koeswandi, on Wednesday (7/1) in Jakarta.

This article also appeared on VRITIMES