PT Krakatau Steel, through its subsidiary PT Krakatau Sarana Infrastruktur (KSI), is allocating over 500 hectares of land in the Krakatau Industrial Estate, Cilegon, Banten, to support a significant investment plan by China’s Delong Steel Group and its Indonesian arm, PT Dexin Steel Indonesia.
Established in 1970, PT Krakatau Steel is an Indonesian state-owned enterprise engaged in steel production. The Indonesian government holds the majority of the company's shares through Danantara.
Established in 2020, PT Dexin Steel Indonesia or PT DSI is a joint venture between Chinese steel producer Delong Group, through its subsidiary Delong Steel Singapore Projects, with Shanghai Decent Investment, Hanwha Singapore, and PT IMIP. PT DSI operates in the Indonesian Industrial Estate Morowali Industrial Park (IMIP).
The planned partnership centers on the development of an integrated steel plant with an annual production capacity of 3 million tons.
“This proactive step began in May 2025, when our representatives visited Delong Steel Group in China to sign a cooperation agreement for raw material supply and explore other potential collaborations. The land allocation reflects our concrete commitment. This collaboration is not only about optimizing our assets, but also about bringing in valuable technology and expertise,” Krakatau Steel President Director Akbar Djohan said as quoted in a statement on Monday, June 9, 2025.
Ranked 11th globally and 7th in China, Delong Steel Group sees Cilegon as a highly strategic location for its new industrial hub. The company’s management is conducting in-depth assessments and views the Krakatau Industrial Estate as a well-established area with mature infrastructure ideal for their expansion plans.
The proposed site is deemed highly suitable to support the construction of Delong’s new plant, which will focus not only on producing high-quality steel but also on the potential development of green steel − environmentally friendly, sustainable steel products.
“Our main vision is to revitalize the national steel industry and position Cilegon as Southeast Asia’s benchmark for an eco-friendly steel sector,” Akbar emphasized.
Business negotiations between Krakatau Steel and Delong Steel are currently underway. The planned investment is expected to create thousands of local jobs, boost Indonesia’s industrial value-added output, and positively impact the national economy and trade balance.
“We’re not just building a plant − we aim to develop a resilient, globally competitive national steel ecosystem. This is critical for supporting the needs of Indonesia’s National Strategic Projects going forward,” Akbar concluded.
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