Krakatau Steel signs MoU with Cilegon to streamline port access

State-owned steelmaker PT Krakatau Steel signed a memorandum of understanding with the Cilegon city government on Wednesday to improve port access and optimize the use of industrial land in the city, a key heavy-industry hub in western Java.

Cilegon Mayor Robinsar and Krakatau Steel President Director Akbar Djohan display the signed memorandum of understanding at the mayor’s residence in Cilegon on Wednesday. The agreement covers plans to improve port access and expand the use of industrial land as part of a proposed 10,000-hectare Special Economic Zone. (Photo: Krakatau Steel)

CILEGON — The agreement was signed at the mayor’s official residence by Krakatau Steel President Director Akbar Djohan and Cilegon Mayor Robinsar, witnessed by local officials and members of the regional leadership forum.

The partnership focuses on improving logistics flow through Cilegon’s port facilities, which the company said have contributed to high distribution costs for raw materials and finished steel products.

Djohan said better coordination with the city administration would help reduce inefficiencies in port access and support a more competitive supply chain.

“Improving how goods move through the port will have a direct impact on our cost structure and competitiveness,” Djohan said.

In addition to port logistics, the MoU includes plans to expand the use of industrial land managed by the company. Krakatau Steel currently oversees around 500 hectares and plans to gradually develop up to 10,000 hectares as part of a longer-term industrial zone expansion.

City officials said the plan could support the development of a proposed Special Economic Zone aimed at attracting more industrial investment into Cilegon.

Robinsar said the city government wanted the agreement to lead to tangible economic benefits for residents.

“We want Cilegon to become a competitive industrial hub that creates jobs and strengthens the local economy,” he said.

The initiative aligns with the central government’s broader push to accelerate industrial development and improve infrastructure to support investment growth.