Tuesday, 15 October 2019 | 06:31 WIB

Krakatau Steel Invests IDR 1.5 Trillion to Develop Desalination Facility

Krakatau Steel Invests IDR 1.5 Trillion to Develop Desalination Facility (krakatausteel)

JAKARTA, NETRALNEWS.COM - State-owned steel company PT Krakatau Steel (Persero) Tbk (IDX:KRAS), through its subsidiary PT Krakatau Tirta Industri, in collaboration with PT Chandra Asri Petrochemical Tbk (CAP), is set to develop a desalination facility to produce industrial water.

The signing of this cooperation was carried out at the Krakatau Steel Jakarta Building conducted by PT KTI President Director Agus Nizar Vidiansyah with CAP Human Resources & Corporate Affar Director CAP Suryandi and CAP Monomer Feedstock Director as representatives of President Director CAP Erwin Ciputra witnessed by the President Director of PT Krakatau Steel (Persero) Tbk Silmy Karim with the board of directors and management.

Silmy Karim said that the implementation of this project was in line with the government's plan which was intensively implementing development in the infrastructure sector and opening access to industrial development in all regions of Indonesia.

"This seawater utilization project is expected to be an effective step to meet water needs for industrial needs in Banten Province, especially for CAP. This is a new strategy of the Company to encourage the development of potential business subsidiaries," Silmy said in a statement on Tuesday (6/18). / 2019).

Agus Nizar Vidiansyah revealed that the sea water treatment project that will be carried out by PT KTI and CAP will be one of the largest seawater treatment facilities in Indonesia because it has a production capacity of 800-1,000 liters per second with a valuation of project values ​​reaching almost IDR 1.5 trillion . Meanwhile, this project is planned to start operating in 2022.

Furthermore, Vidiansyah stated that this project is expected to run smoothly and not experience any obstacles.

"We also appealed to the management to be able to carry out this project by paying attention to the principles of prudence, good faith, and the principles of good corporate governance," he said.

In addition to the Banten region, PT KTI has also expanded to the Gresik region, East Java, by obtaining a construction and operation tender for the Drinking Water Treatment System held by PDAM Giri Tirta Gresik in 2018. The project will have a capacity of 1,000 liters per second with investment value IDR 618 billion.

In 2018 the performance of PT KTI obtained a net profit of Rp 161 billion and it is projected that PT KTI's net profit will increase to Rp 163 billion in 2019.

Meanwhile, the current production water capacity is 2,400 liters / second with a production water capacity target of 3,500 liters / second in 2024.