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Krakatau Steel eyes $10 million net profit
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Public Works and Public Housing Ministry deputy director Mukhtar Rosyid Harjono (left to right), Industry Ministry director general for metal, machinery, transportation equipment and electronic industries I Gusti Putu Suryawirawan, Cilegon Mayor Tubagus Iman Ariyadi, Industry Ministry metal industry director Doddy Rahadi and Bobby Siagian from the Office of the Coordinating Economic Minister pose for a photograph during the opening of the 2017 Indonesia Steel Conference. (JP/ Stefani Ribka)
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tate-owned and publicly listed Krakatau Steel (KRAS) aims to book US$10 million in net profit this year after losing $171.69 million amid low steel prices last year.
Steel prices could still go lower than they are today, said the firm’s president director, Mas Wigrantoro Roes Setyadi, but he expressed his optimism about achieving the company’s target through cost efficiency measures and more aggressive marketing.
"We have a cost efficiency program targeting 15 percent lower (operational) costs than last year," he told The Jakarta Post after the 2017 Indonesia Steel Conference "The Road to Cilegon 10 MT Steel Cluster" in Jakarta on Tuesday.
"We'll make the management of maintenance and procurement more efficient and reduce idle manpower," he added.
The firm reiterated its mission to also provide products it cannot produce itself by sourcing them from third parties in a bid to increase sales.
In the first quarter, the firm’s loss fell by 65.3 percent to $20.7 million, while its revenue increased by 12.5 percent to $350.1 million. (bbn)
