PT Krakatau Steel (Persero) Tbk with PT Perusahaan Pengelola Asset (Persero) (PT PPA) signed a Memorandum of Understanding (MoU) for Cooperation in Fulfilling the Need for Steel Products and other potential forms of cooperation.

Commercial Director of Krakatau Steel Melati Sarnita and Director of Investment 1 and Restructuring of PT PPA Rizwan Rizal Abidin virtually signed the MOU on Wednesday.

President Director of Krakatau Steel, Silmy Karim, said that this collaboration aims to strengthen the manufacturing and infrastructure industries, which require steel products and their derivatives in Indonesia while adhering to the principles of good corporate governance.

"This collaboration will provide greater opportunities for SOEs in the manufacturing cluster to help guarantee the fulfillment of sustainable steel needs, both for their business interests and for infrastructure projects run by the government in order to accelerate the recovery of the national economy," said Silmy in Jakarta, Wednesday (16/6).

Silmy added that Krakatau Steel is very grateful to PT PPA, which has become a bridge between Krakatau Steel and the steel user industry.

"The partnership with PT PPA is one of the enablers in the development of the steel business in Krakatau Steel which will assist in the process of strengthening the national steel industry and accelerating the recovery of the national economy," he explained.

Meanwhile, President Director of PT PPA Yadi Jaya Ruchandi said the synergy with Krakatau Steel is an essential part of a joint effort to strengthen the SOE ecosystem.

"We believe that the advantages of each company can create greater value and benefits for stakeholders, of course, based on the values ​​of Amanah, Competent, Harmonious, Loyal, Adaptive, Collaborative (AKHLAK)," he said.

Through this collaboration, PT PPA will become a procurement center for manufacturing SOEs in the Danareksa-PPA Cluster.  The partnership helps provide the company access to steel raw materials at the best prices and efficient processes.

"PT PPA will be the center of procurement that ensures the availability of steel raw materials to manufacturing SOEs. In the early stages, the volume of steel needs from manufacturing SOEs at PT PPA reached 15,000 tons, and in the coming years it is expected to increase significantly, "said Yadi.