KAI Expands Business Through MoU with Krakatau Steel

PT Kereta Api Indonesia (Persero) has taken a strategic step to expand its business while supporting Indonesia's economic recovery.

This initiative was marked by the signing of a Memorandum of Understanding (MoU) with PT Krakatau Steel (Persero) Tbk at KAI Headquarters in Bandung on Monday (10/1).

The MoU was signed by KAI President Director Didiek Hartantyo and Krakatau Steel President Director Silmy Karim.

President Director of PT Kereta Api Indonesia (Persero), Didiek Hartantyo, and President Director of PT Krakatau Steel (Persero) Tbk, Silmy Karim, signed the Memorandum of Understanding in the Auditorium of PT Kereta Api Indonesia (Persero) Headquarters on Monday (10/1).

"Krakatau Steel is one of the strategic state-owned enterprises that plays an important role in Indonesia's economy, and so is KAI. This collaboration marks an important first step in supporting the government and Indonesia's efforts to accelerate economic recovery," said Didiek.

The MoU serves as an initial commitment and foundation for preparing all aspects of the planned cooperation. Its implementation will include the utilization of scrap materials originating from Assets Retired from Operations (ATDO) and other used assets owned by KAI, which will be utilized by Krakatau Steel to support the needs of the national steel industry.

The cooperation will also cover the transportation of Krakatau Steel's products by rail, the optimization of railway freight services, the development of steel-based spare parts for railway rolling stock and infrastructure, the development of cooperation within industrial areas in Cilegon and Batang, as well as the optimization and development of KAI's land and facilities, including the construction of a Krakatau Steel logistics hub.

Through this MoU, KAI and Krakatau Steel will strengthen their synergy in optimizing the Domestic Component Level (TKDN) to support domestic needs. This collaboration will involve not only the parent companies but also the subsidiaries of both KAI and Krakatau Steel. The objective is to improve business efficiency while contributing to broader economic growth. The planned business development will extend beyond freight transportation to include the development of railway-based industrial estates.

KAI President Director Didiek Hartantyo expressed his appreciation and gratitude to the Board of Directors of Krakatau Steel for the successful signing of the MoU. He hopes this collaboration will unlock greater business potential for both state-owned enterprises.

"I hope this moment marks the beginning of continuous cooperation so that we can accelerate the companies' positive performance and achieve even better results throughout 2022," said Didiek.

In line with this, Krakatau Steel President Director Silmy Karim stated that logistics plays a vital role in Indonesia's economic development. He added that the signing of this MoU will create added value for both companies.

"We hope this partnership will bring benefits to all of us, especially to both companies, state-owned enterprises, the nation, and the country," said Silmy Karim.

Prior to the signing ceremony, the boards of directors of KAI and Krakatau Steel travelled aboard KAI's Inspection Train from Gambir Station to Bandung Station and back. During the journey, the Krakatau Steel delegation expressed their satisfaction and admiration for the excellent services provided aboard the Inspection Train. (Public Relations KAI)