TEMPO.CO, Jakarta - State-owned steel producer Krakatau Steel planned to restructure its corporate organization and a number of subsidiaries for the next three months. The corporate would consolidate subsidiaries having similar business lines.

The corporate president director Silmy Karim said his firm was under pressure due to the rampant circulation of imported steel in Indonesia since 2014. Thus, he opined, the corporate must be realistic, and so cutting down the non-productive business.

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Silmy targeted to complete the restructuring this year, “in a bid to actualize the fit, agile, and fast company. Besides, it will support the main and supporting business as to strengthen the company’s value in the future,” said Silmy last week, adding that he would allocate the firm’s resources to back high-margin business.

According to him, the government must encourage and strengthen the national steel industry through cross ministries and institutions. Otherwise, the implementation of industry 4.0 toward the steel industry would be fruitless.

Throughout 2018, Krakatau Steel recorded a net income hike by 20.05 percent year-on-year at US$1.73 billion. This was in line with the increase in sales volume at 12.84 percent or 2.14 million tons, compared to the previous year’s 1.90 million tons. Meanwhile, the deficit amounted to US$74.82 million, lower than the previous year’s US$81.74 million.

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