TEMPO.CO, Jakarta - State-owned steel company PT Krakatau Steel (Persero) Tbk, will acquire 500 hectare of land in Anyer, Serang, Banten, as it plans to develop an industrial area.
Krakatau Steel president director Sukandar said that the acquisition will be carried out by the company’s subsidiary PT Krakatau Industrial Estate Cilegon (KIEC). “The acquisition process is ongoing,” he said Tuesday in public expose, as quoted by Bisnis Indonesia.
Sukandar said that the company will need Rp700-750 billion to complete the acquisition, which will be disbursed from internal cash reserves. The company has completed the acquisition of 350 hectares of land. It is aiming to complete development of 100 hectares of land by 2017.
Moreover, KIEC is exploring opportunities to develop industrial areas in East Java’s Bojonegoro and West Java’s Subang. The company plans to develop the areas together with subsidiaries of other SOEs. Sukandar declined to name them.
At present, Krakatau Steel owns 99.99 percent of KIEC, while the remaining 0.01 percent is owned by PT Krakatau Engineering. KIEC is engaged in industrial (industrial areas, warehousing, offices), commercial (hotels, golf courses and sport facilities) and residential sectors.
The KIEC industrial area takes up a surface area of 550 hectares (industrial area I) and 75 hectares (industrial area II). It is home to Cigading Port, power plants, industrial water treatment plants, among others.
The KIEC owns The Royale Krakatau Hotel in Cilegon, West Java, situated next to Krakatau Pertama golf course, one of Indonesia’s oldest.