State-owned publicly listed steel company PT Krakatau Steel aims to reduce its net losses to US$51 million by the end of 2016 from the $87.54 million in losses recorded in the first half of the year.

The company reduced its net losses from $134.93 million during the first half of 2015 after it increased production and sales.

"Our total sales in the first half reached 1.17 million tons, increasing 39.59 percent compared to last year's first half," president director Sukandar said at a shareholder’s meeting on Thursday.

The company hopes to persuade the government to use Indonesian-made steel in national projects, especially the steel bars for concrete construction, he said.

This year, the company succeeded in booking an operating profit of $26.69 million although the company recorded a loss in its bottom line. Sukendar said the loss came from the company’s unprofitable subsidiaries. (evi)