Erick Thohir Ends Indications of Corruption in Krakatau Steel

Jakarta, CNN Indonesia —

Minister of State -Owned Enterprises (BUMN) Erick Thohir said there were indications of corruption within the PT Krakatau Steel Tbk (Persero). This indication arises from the company’s debt which reached US$ 2 billion or Rp. 28.515 trillion (Exchange rate of Rp. 14,257 per US dollar).

Erick explained that the debt came from Krakatau Steel’s investment of US$850 million. The company previously invested the funds in the project blast furnace.

“Krakatau Steel, has a debt of US$2 billion. One of them is an investment of US$850 million from the project blast furnace which is stalled today. There must be indications of corruption,” said Erick in the Bangkit Together Talkshow, Tuesday (28/9).

He said his party would pursue those who harm state-owned companies. All faulty business processes, said Erick, must be corrected.

Over time, Erick said that the restructuring of Krakatau Steel was going well. The company restructured several stages.

First, Krakatau Steel makes subholding for industrial areas. It integrates water to water.

Second, The Ministry of SOEs and the management of Krakatau Steel are negotiating with Posco Korea to increase the share share to 50:50.

It is known, Krakatau Steel and Posco Korea formed a company called PT Krakatau Posco. The company is an integrated steel mill that started in 2014. has tried to confirm indications of corruption to the President Director of Krakatau Steel, Silmy Karim. However, there has been no response until the news was revealed.

[Gambas:Video CNN]




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