PT Krakatau Steel (Persero) Tbk and its group (Krakatau Steel Group) have prepared over 500 hectares of land in the Krakatau Industrial Estate, Cilegon, Banten, to support a major investment plan by China’s Delong Steel Group — the 11th largest steel producer globally and 7th in China — along with its subsidiary, PT Dexin Steel Indonesia. The proposed collaboration focuses on building an integrated steel plant with an annual production capacity of 3 million tons. This initiative began in May 2025, when Krakatau Steel representatives visited Delong Steel Group in China to sign agreements on raw material procurement and explore other potential collaborations. The land provision, managed through Krakatau Steel’s subsidiary PT Krakatau Sarana Infrastruktur (KSI), is seen as a tangible commitment to support this strategic project.
Delong Steel views Cilegon as a highly strategic location for its new steel hub, thanks to its developed infrastructure and industrial support ecosystem. The new plant will not only produce high-quality steel but also aims to venture into the production of environmentally friendly green steel. The partnership is expected to drive technological transfer and workforce development, while revitalizing Indonesia’s steel industry. With ongoing negotiations, the project is projected to create thousands of local jobs, boost industrial product value, strengthen Indonesia’s trade balance, and help meet the demands of National Strategic Projects. Krakatau Steel President Director Akbar Djohan emphasized that the vision is not just to build a factory, but to strengthen a globally competitive steel ecosystem in Southeast Asia.
