State asset management company Danantara plans to hold a groundbreaking ceremony in March 2026 for an integrated steel mill project with an annual capacity of 3 million tons. The company's COO and chairman of the SOE supervisory board stated that developing upstream steel capacity is a core priority, aiming to break the long-standing monopoly of imported steel in Indonesia's domestic market. This statement was made during a working meeting and hearing with the House of Representatives' Commission VI.
The 3-million-ton annual capacity steel mill project had previously involved cooperation discussions between state-owned Krakatau Steel and China's Delong Steel Group, ranked 11th globally. The project is planned for the Cilegon Industrial Estate in Banten Province, covering 500 hectares. Delong Steel's investment aims not only to increase steel output but also to bring related technology transfer to Indonesia through the development of green steel concepts.
The president director of Krakatau Steel previously stated that the company would provide project land through its infrastructure subsidiary, aiming to make Cilegon a benchmark for the Southeast Asian steel industry while revitalizing the company's operational assets. He also noted that cooperation with Delong Steel would not only fully utilize the company's land assets but also introduce valuable technology and knowledge transfer.
The management of Delong Steel Group also recognized the locational advantages of Cilegon, considering the area a strategic site for building a new steel industry center, with mature and complete supporting facilities to support the construction and operation of a large steel mill. The group is currently conducting in-depth research on the project, particularly favoring the Cilegon Industrial Estate operated by Krakatau Steel.
State asset management company Danantara plans to hold a groundbreaking ceremony in March 2026 for an integrated steel mill project with an annual capacity of 3 million tons. The company's COO and chairman of the SOE supervisory board stated that developing upstream steel capacity is a core priority, aiming to break the long-standing monopoly of imported steel in Indonesia's domestic market. This statement was made during a working meeting and hearing with the House of Representatives' Commission VI.
The 3-million-ton annual capacity steel mill project had previously involved cooperation discussions between state-owned Krakatau Steel and China's Delong Steel Group, ranked 11th globally. The project is planned for the Cilegon Industrial Estate in Banten Province, covering 500 hectares. Delong Steel's investment aims not only to increase steel output but also to bring related technology transfer to Indonesia through the development of green steel concepts.
The president director of Krakatau Steel previously stated that the company would provide project land through its infrastructure subsidiary, aiming to make Cilegon a benchmark for the Southeast Asian steel industry while revitalizing the company's operational assets. He also noted that cooperation with Delong Steel would not only fully utilize the company's land assets but also introduce valuable technology and knowledge transfer.
The management of Delong Steel Group also recognized the locational advantages of Cilegon, considering the area a strategic site for building a new steel industry center, with mature and complete supporting facilities to support the construction and operation of a large steel mill. The group is currently conducting in-depth research on the project, particularly favoring the Cilegon Industrial Estate operated by Krakatau Steel.