TEMPO.CO, Jakarta - Steel giant PT Krakatau Steel Tbk has signed a loan agreement from Dutch bank Commerzbank AG worth US$260 or around Rp3.4 trillion to build the Hot Strip Mill (HSM#2), which has been targeted for completion in September 2017.
Krakatau Steel president director Sukandar said the project was critical to his company. “This investment will help Krakatau Steel become the leader in the hot rolled steel plates in the national market,” he said on Thursday, May 21, 2015.
Sukandar said the global market steel was still non-conducive, yet the Indonesian market had been projected to remain open in light of increasing steel demand.
“What with the government’s paying more attention to the steel industry by imposing higher import duties on steel,” he said.
Commerzbank AG financial export director Ralph Lerch said Indonesia was a promising market amid the declining global steel industry, and that the bank would back Krakatau Steel in the latter’s future investment and expansion in the domestic level.
“This support is a form of Commerzbank's indirect contribution to the development of Indonesian infrastructure,” he said.
Krakatau Steel has secured prior consent from the Coordinating Ministry for the Economy for the agreement, which according to Sukandar signaled the government’s support to step up the development and growth of the domestic steel industry.