Krakatau Steel Targets Rp 6 Trillion Profit in 2025 as Danantara Funding Accelerates Turnaround

JAKARTA, Investortrust.id — PT Krakatau Steel (Persero) Tbk or KRAS targets a net profit of around Rp 6 trillion in 2025 in Jakarta on Wednesday, Jan 28, 2026 as business transformation and financial restructuring gain momentum, supported by fresh funding from Danantara that is expected to strengthen its fundamentals and restore market confidence. The projected profit marks a sharp turnaround for the state owned steelmaker after years of financial strain and restructuring.

The company’s president director, Muhamad Akbar Djohan, said the optimistic outlook reflected broad based improvements across operations rather than short term financial engineering. He said management had focused on fixing structural weaknesses that had long weighed on performance.

“So thank God, this year, God willing, we will record very significant profit, roughly Rp 6 trillion,” Akbar said after attending the Investortrust Best Stock Awards 2026 at a hotel in Jakarta on Wednesday.

Danantara, Indonesia’s sovereign investment manager, recently injected Rp 4.93 trillion into Krakatau Steel following a strict assessment of its turnaround plan and long term prospects. Akbar said the funding served as a critical catalyst for accelerating reforms across the group.

The funds were allocated for working capital, production efficiency, debt restructuring, and human capital transformation, areas management considered essential to restoring competitiveness and sustainability. The restructuring aimed to reduce bureaucratic rigidities and align the company’s culture more closely with private sector practices.

“With transformation and financial restructuring, in the coming years the profits will be much stronger and become our responsibility to return to the state, either through dividends or added value for the national economy,” Akbar said.

At the same event, Krakatau Steel received the Best Stock Awards 2026 for the Basic Materials sector, a recognition management viewed as a signal of renewed investor trust. The award followed a sharp rebound in the company’s share price, which rose by around 200 percent over the past year.

“Best Stock Awards is a leverage for how the national steel industry regains public trust, proven through stock performance,” Akbar said. “As the largest steel producing state owned enterprise, our bottom line is trust itself.”

Akbar said the turnaround was anchored by the company’s “Committed to Transform” program, which focused on overhauling business processes, decision making speed, and accountability. He said the shift away from entrenched bureaucratic habits had been critical in improving execution.

“Transformation is not just a slogan. We know where the pain points are, what the problems are, and what the remedies are,” Akbar said. “What is needed is the courage to execute quickly and cut unnecessary bureaucracy.”

Beyond internal reforms, Krakatau Steel also secured strategic assignments aligned with the government’s downstream industrial policy, aimed at reducing imports of steel raw materials and strengthening domestic value chains. Management said these initiatives would support more stable demand and margins over time.

Chief Operating Officer of Danantara, Dony Oskaria, previously said the funding was part of a broader effort to rehabilitate Krakatau Steel and enable entry into upstream steel segments, integrating operations from upstream to downstream. The upstream expansion was expected to begin this year.

Financially, Krakatau Steel recorded a return to profitability in the first nine months of 2025 with net profit of about $24 million, reversing losses a year earlier. Revenue rose by around 7 to 8 percent year on year, while liabilities declined and equity strengthened.

Market participants noted that the initial profit recovery was still supported by non operational factors, particularly one off gains from debt restructuring. Core steel margins remained thin amid volatile global steel prices, highlighting the challenge of sustaining profitability.

Even so, analysts said Danantara’s backing provided breathing room for operational improvements. Higher utilization of the hot strip mill and lower financing costs were expected to gradually lift EBITDA and lay the groundwork for a more durable recovery into 2026.