Krakatau Steel Posts $460.83 Million Revenue in H1 2025, But Losses Deepen
Main Takeaways
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JAKARTA, investortrust.id – PT Krakatau Steel (Persero) Tbk, or KRAS, reported a revenue increase to $460.83 million (Rp7.48 trillion) in the first half of 2025, up from $444.67 million in the same period last year. However, the state-owned steelmaker saw its net loss surge to $105.38 million, from $60 million previously, reflecting persistent financial headwinds.
The deeper losses contrast starkly with KRAS’s soaring stock price, which has jumped 150% to Rp320 over the past three months. The surge even prompted a temporary trading suspension by the Indonesia Stock Exchange (IDX).
In a financial disclosure submitted to the IDX on Friday, July 25, 2025, Krakatau Steel also reported a decline in gross profit to $33.97 million (Rp551.3 billion), down from $48.23 million in the first half of 2024. The company’s gross profit margin now stands at 7.37%.
Operational Gains, But Non-Operating Pressures Remain
President Director Muhamad Akbar Djohan emphasized that Krakatau Steel had made operational improvements, notably reducing operating expenses by 16% to $47.6 million (Rp772.8 billion). “This reflects our commitment to cost restructuring and productivity enhancement,” Akbar stated.
Nonetheless, KRAS continues to face challenges from non-operational factors such as financial expenses and investment results from associated entities. Total assets grew marginally by 0.61% to $2.91 billion (Rp47.27 trillion) as of June 30, 2025.
Strategic Shift with Hot Strip Mill and Integration Plan
As part of its recovery strategy, the company has reactivated its Hot Strip Mill #1 (HSM#1) facility at the start of 2025. “This facility plays a key role in our business transformation agenda,” Akbar noted, adding that KRAS is also pushing ahead with integration across both steel and non-steel segments as part of its diversification efforts.
Earlier this month, the government transferred 80% of its shares in KRAS to the Indonesia Investment Authority, known as Danantara, marking a strategic shift in the company’s ownership structure aimed at revitalizing the firm through sovereign capital.
Despite the widening losses, Akbar expressed optimism for a stronger second-half performance. “We remain focused on increasing capacity, improving efficiency, and collaborating with strategic partners to achieve sustainable performance,” he said.
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