Krakatau Steel targets KEK status for Krakatau Industrial Estate to attract global investors

PT Krakatau Steel (Persero) Tbk (KRAS) has reaffirmed its commitment to strengthening the Krakatau Industrial Estate (Kawasan Industri Krakatau/KIK) as an epicenter of national economic growth.

President Director Akbar Djohan said at the Krakatau Industrial Business Gathering 2026 that the strategic move is aimed at capturing global investment opportunities and accelerating the estate’s transformation into a special economic zone (Kawasan Ekonomi Khusus/KEK).

“As the host of the industrial estate, Krakatau Steel Group will continue to provide fast and transparent services and make it easier for tenants and investors to do business. Collaboration is the key to building a competitive industrial estate,” Akbar said in a statement released in Jakarta on Saturday.

Echoing President Prabowo Subianto’s message at the 2026 World Economic Forum in Davos, Switzerland—highlighting the importance of stability and a strong industrial ecosystem—Akbar said the company is committed not only to strengthening its core steel business, but also to building an integrated industrial ecosystem that is sustainable and globally competitive.

“Krakatau Steel’s ‘go global’ spirit is becoming increasingly tangible. After forming strategic partnerships with South Korea and Japan, we have now welcomed investors from China to build a plastic pellet facility in Cilegon,” he said.

In the near term, Akbar added—who also serves as chairman of the Indonesia Iron & Steel Industry Association (IISIA) and chairman of the Indonesian Logistics and Forwarders Association (ALFI/ILFA)—investment in an electric vehicle (EV) truck plant and other strategic projects would soon follow.

He said the Krakatau Industrial Business Gathering 2026 is a strategic step to build an industrial-estate ecosystem that is competitive, adaptive to global dynamics and anchored in stronger collaboration to seize new investment opportunities.

According to Akbar, Krakatau Steel is actively pushing the transformation of the Krakatau Industrial Estate into a KEK.

He said KEK status is expected to offer fiscal incentives, tax facilities, customs-related benefits and significantly streamlined licensing procedures for investors.

“By strengthening integrated manufacturing infrastructure, Krakatau Steel Group is playing an active role in supporting President Prabowo Subianto’s Astacita agenda as part of efforts to transform Indonesia’s economic structure into one that is more productive, inclusive and globally competitive,” Akbar said.

At the same event, former tourism and creative economy minister (2020–2024) Sandiaga Salahuddin Uno, who attended as the keynote speaker, encouraged optimism among KIK tenants.

Sandiaga said Indonesia’s economy remained solid, with growth above 5 percent, while improving industrial-estate competitiveness was a key factor in widening investment space.

“Industrial estates are an engine of national economic growth, contributing significantly to GDP, jobs and non-oil and gas exports. With the manufacturing PMI in expansionary territory in 2026, this is not the time for a wait-and-see approach, but the right moment to become a first mover in investing,” he said.

He further stressed that the future of industrial estates lies in integrating the Special Economic Zone (SEZ) concept with the green economy, where renewable energy support, efficient logistics connectivity and sustainability principles are non-negotiable requirements to attract global investors.

“Sustainability must become a business value-add. Through innovation, adaptation and collaboration, industrial estates can transform into leading ecosystems that not only attract quality investment but also strengthen the country’s export base,” Sandiaga said.

Indonesianpost.com | Antara