Danantara to Inject Capital into Struggling Krakatau Steel
Executive Summary
Key insights and market outlook
Danantara will provide capital injection to PT Krakatau Steel (KRAS), which is facing financial difficulties. The injection, valued at potentially US$500 million (Rp8.27 trillion), aims to support the steelmaker's working capital needs. Danantara's Managing Director, Febriany Eddy, confirmed the plan, stating that the final details are being validated.
Deep Dive Analysis
Danantara to Support Krakatau Steel with Capital Injection
Financial Rescue for Struggling Steel Maker
Danantara, through its investment management arm, is set to provide a significant capital injection to PT Krakatau Steel Tbk (KRAS), a state-owned steel manufacturer facing severe financial distress. The planned injection is valued at potentially US$500 million (approximately Rp8.27 trillion), as proposed by KRAS.
Current Financial Condition
Febriany Eddy, Managing Director of Danantara, described Krakatau Steel's current financial condition as highly concerning. The company's facilities have deteriorated significantly, with many buildings no longer properly maintained. The workforce has also dwindled from tens of thousands to a much smaller number.
Rationale Behind the Capital Injection
The capital injection is intended to support Krakatau Steel's working capital needs and maintain its core steel production operations. While the exact amount is still being finalized, Febriany confirmed that the process is nearing completion. The intervention is seen as crucial for the company's survival and potential recovery.
Source References
Story Info
Topics Covered
Key Events
Capital Injection Plan for Krakatau Steel
Financial Restructuring for State-Owned Enterprise