Krakatau Steel Emphasizes the Importance of Protecting the Steel Industry to Maintain National Business Sustainability

Jakarta, 18 February 2026 – PT Krakatau Steel (Persero) Tbk/Krakatau Steel Group emphasizes the need to strengthen national steel industry protection policies in order to maintain domestic market stability, business sustainability and investment attractiveness amidst global pressures of excess capacity and distortions in international steel prices.

The company views strengthening national steel industry policy as the main prerequisite for maintaining the health of the domestic market while strengthening the company’s business fundamentals. Main Director of Krakatau Steel, Dr. Akbar Djohan emphasized that correcting the market structure is the key to the sustainability of the national steel industry.

“Global experience shows that without effective import controls and firm protection policies, price pressures will continue to erode the utilization and viability of the industry. Krakatau Steel encourages the creation of a healthy domestic steel market ecosystem so that the national industry is able to grow sustainably and attract long-term investment,” said Dr. Akbar Djohan, who also carries out the mandate as Chairman of the Indonesian Iron & Steel Industry Association (IISIA) and Chairman of the Indonesian Logistics & Forwarder Association (ALFI/ILFA).

According to him, strengthening the national steel industry will not only have an impact on corporate performance, but also on the stability of the manufacturing supply chain, job creation and the resilience of national strategic industries.

Global Experience Demonstrates Key Role of Protection Policies

In this context, Steel and Mining Industry Observer, Widodo Setiadharmaji, Steel & Mining Insight assesses that the closure of Krakatau Osaka Steel in January 2026 reflects the structural problems of the national steel industry which cannot be resolved solely through company efficiency.

“The closure of Krakatau Osaka Steel is the tip of the iceberg of pressure on the steel industry due to supply imbalances and prolonged price pressures,” said Widodo.

Widodo explained that similar pressures occurred in South Korea, Europe and the UK, where many steel factories were closed due to overcapacity and weakening margins. In contrast, the United States is able to maintain the sustainability of its industry through import protection policies and securing strategic capacity.

“Policy certainty keeps the US steel industry economically viable while attracting global investment,” he added.

Momentum for Strengthening National Strategic Industries

Efforts to strengthen protection for the national steel industry are in line with the Asta Cita of the President of the Republic of Indonesia, Prabowo Subianto, who emphasizes the independence of strategic industries, strengthening domestic added value, and national economic resilience amidst global dynamics.

The steel industry as the backbone of infrastructure development, manufacturing and downstreaming of resources is considered to have a central role in driving sustainable economic growth.

About Krakatau Steel Tbk

A Glance About PT Krakatau Steel (Persero) Tbk PT Krakatau Steel (Persero) Tbk is an integrated steel manufacturing company which was founded on August 31 1970. Apart from operating in the steel industry sector, Krakatau Steel Group also develops integrated industrial area businesses, ports, logistics, industrial water supply, energy supply through power plants, as well as a number of joint ventures with Korean and Japanese companies. Currently, Krakatau Steel is committed to carrying out company transformation through the KS Reborn program with the spirit of “Revolutionary Movements: Committed to Transform”, which is focused on strengthening governance, transparency, developing human capital, strengthening downstream business, and optimizing infrastructure business in order to build stakeholder trust and attract investors.

This press release has also appeared on VRITIMES.