Krakatau Steel inks deal with state construction firms on steel supply

By Bambang Atmaja

State-controlled steel company, PT Krakatau Steel Tbk on Monday signed an agreement on Monday with six state-owned construction companies at the State Palace on the supply of steel for infrastructure projects.

The six construction firms were PT Adi Karya, PT Brantas Adipraya, PT Hutama Karya, PT Pembangunan Perumahan, PT Waskita Karya and PT Wijaya Karya.

Under the agreement, IDX-listed PT Krakatau Steel will supply all steel products to be required by the six firms for construction of infrastructure projects funded by state budget, Rini M. Soemarno, Minister of State-Owned Enterprises said.

?If they (state construction firms) need steel and the steel is produced by Krakatau Steel, they must take it from Krakatau Steel,? she said after the signing of the agreement, which was witnessed by President Joko Widodo.

However, the minister said that the firms are still allowed to purchase steel from other sources if it is not manufactured by Krakatau Steel.

Editing by Reiner Simanjuntak