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Krakatau Steel losses swell despite asset revaluation
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An employee finishes production of steel pipes at the Krakatau Steel plant in Cilegon, Banten recently. The publicly listed steel maker is preparing a number of strategies to help the company curb its ballooning losses and survive low steel prices. (The Jakarta Post/-)
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tate-owned steel producer Krakatau Steel Tbk had launched an asset revaluation to defend against reduced steel prices last year, but it was not enough to prevent its losses from doubling.
In 2015, the company’s losses soared 117 percent to Rp 4.4 trillion (US$335 million). Subsequently, it launched an asset revaluation that led to an asset increase of 42 percent to $3.7 billion and cut the cost of goods sold (COGS) by 25.67 percent to Rp 17.36 billion.
"There was a crush in the global steel prices triggered by a steel supply glut in China, which increased from 83 million tons in 2014 to 111 million tons in 2015," said Krakatau Steel president director Sukandar after an annual general meeting (AGM) in Jakarta on Monday.
In the AGM, the shareholders approved commissioner Binsar H. Simanjuntak to become president commissioner, replacing Ahmad Sofjan whose tenure ended this year. Hilmar Farid, who is now the Education and Culture Ministry's general director, was replaced by Ridwan Djamaludin.
Finance director Anggi Hindratmo has been replaced by Tambok P. Setyawati, who previously served as head of the market intelligence and business portfolio division at Bank Negara Indonesia Tbk. (ags)
