JAKARTA — PT Krakatau Steel (Persero) Tbk (KRAS) has merged four of its subsidiaries into a single entity. The merger places PT Krakatau Baja Konstruksi (KBK) as the surviving company.
The three companies merged into KBK are PT Krakatau Baja Industri (KBI), PT Krakatau Konsultan (KK), and PT Krakatau Perbengkelan dan Perawatan (KPdP).
Quoted by IDN Financial, Acting Corporate Secretary of Krakatau Steel Rachman Hidayat said the merger is part of the company’s business strategy. The merger deed for the four companies was signed on September 30, 2026, in Cilegon.
The four entities are under the control of Krakatau Steel, with the company holding at least 99% of their shares, either directly or indirectly.
“This transaction does not have an impact on the company’s operations, legal and financial conditions, or business continuity,” Rachman said in an information disclosure submitted to the Financial Services Authority (OJK).
In terms of assets, KBK recorded the largest assets among the four companies involved in the merger. As of the end of the first half of 2026, KBK had assets of US$186.3 thousand. Meanwhile, KBI had assets of US$22.6 thousand, KPdP US$60.8 thousand, and KK US$139.
Combined, the four entities had total assets of approximately US$269.87 thousand, equivalent to around Rp4.83 billion based on an exchange rate assumption of Rp17,900 per US dollar.
KBK itself operates in the production of steel profiles and reinforcing bars. The company has been operating since 1992, making it the oldest entity among the four companies involved in the merger.
Krakatau Steel stated that the transaction constitutes an affiliated transaction and does not constitute a conflict-of-interest transaction or a material transaction. The company also reiterated that the merger would not affect KRAS’s operations, legal and financial condition, or business continuity.
The merger of the four subsidiaries is part of Krakatau Steel’s efforts to streamline its business structure amid the company’s ongoing transformation and restructuring process.
