Krakatau Steel allocates over 500 hectares for Delong Group’s green steel investment in Cilegon, Indonesia

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Indonesia’s PT Krakatau Steel , through its infrastructure subsidiary PT Krakatau Sarana Infrastruktur (KSI), is setting aside more than 500 hectares within the Krakatau Industrial Estate in Cilegon, Banten , to facilitate a major investment by China’s Delong Steel Group and its Indonesian joint venture, PT Dexin Steel Indonesia (DSI), Indonesia Business Post reports. The initiative supports plans to build an integrated steel plant with a projected annual capacity of 3mn tonnes, as Delong aims to expand its global footprint. The collaboration, which began with a cooperation agreement signed in May 2025 in China , marks a significant step in leveraging strategic industrial assets and attracting foreign direct investment into Indonesia’s steel sector. Delong, ranked 11th globally and 7th in China , views Cilegon as an ideal location due to its mature infrastructure and logistics advantages. Krakatau Steel’s President Director Akbar Djohan emphasised the long-term vision: “We’re not just allocating land; we’re building a bridge for technology transfer, employment generation, and industrial revitalisation.” PT Dexin Steel Indonesia, established in 2020 as a joint venture between Delong Steel Singapore Projects, Shanghai Decent Investment , Hanwha Singapore, and PT IMIP, currently operates out of the Morowali Industrial Park in Sulawesi. The new Cilegon plant signals a geographic and technological expansion, with ambitions to develop green steel, a sustainable, low-emission product increasingly demanded in global markets. “The Cilegon project aims to position Indonesia as a key player in eco-friendly steel production, setting a regional benchmark,” said Akbar. The development is expected to support national strategic infrastructure programs and bolster the domestic steel supply chain. Ongoing negotiations between Krakatau Steel and Delong Steel cover both industrial and environmental aspects of the project. The planned investment is anticipated to generate thousands of new jobs, enhance Indonesia’s industrial value-added capabilities, and strengthen the country’s trade balance. Akbar concluded, “This partnership is about building a globally competitive steel ecosystem that aligns with Indonesia’s vision for sustainable, high-tech industrial growth.' © 2025 bne IntelliNews, source Magazine

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