Indonesia is making a major leap in the global steel industry as PT Krakatau Steel (Persero) Tbk. allocates over 500 hectares in its Krakatau Industrial Estate, Cilegon, Banten, to support the development of a world-class integrated steel plant. This strategic investment is led by Delong Steel Group, the world’s 11th largest and China’s 7th largest steel producer, which plans to build a facility with a production capacity of 3 million tons per year.
Krakatau Steel’s CEO, Akbar Djohan, emphasized that this collaboration is not merely about building a factory, but about shaping a competitive and resilient national steel ecosystem capable of meeting the needs of Indonesia’s National Strategic Projects. The initiative is a result of growing synergy between the two companies, which began with a visit by Krakatau Steel to Delong’s headquarters in China in May 2025. The visit culminated in the signing of a memorandum of understanding (MoU) for raw material supply and future cooperation, witnessed by Delong Chairman Mr. Ding Liguo. On June 3, 2025, Delong and its subsidiary PT Dexin Steel Indonesia visited Cilegon to inspect the project site. This development is hailed as a landmark step in advancing Indonesia’s steel sector, reinforcing supply chains, stimulating downstream industries, and supporting sustainable growth through enhanced infrastructure capabilities.
