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ANTARA News reported that construction of the integrated steel factory by PT Krakatau-Posco is aimed at reducing dependence on steel imports , which reach 9 million tonnes a year.

Industry Minister MS Hidayat said in Cilegon that "PT Krakatau-Posco, which will have an annual production capacity of 3 million tons and investment in nine other base metal industries would contribute considerably to steel supply in the country.”

Mr Hidayat said that the factory of Krakatau-POSCO and nine other base metal factories will reduce imports by 6.8 million tonne a year. He said the joint venture project is expected to be completed and to be commissioned by the president on Dec. 23 this year.

He added that "We are confident that the factory will boost development of downstream industries in related sector such as shipbuilding, infrastructure and machinery industries.”

PT Krakatau-Posco in Cilegon, Banten, is a joint venture between the state owned steel maker PT Krakatau Steel and the South Korean steel giant POSCO.