ThePresidentPost.com – PT Krakatau Steel Tbk (KRAS) obtain assurance that the government will give state capital participation (PMN) amounting to Rp2.45 trillion next year.
The PMN will distribute in 2 way, Rp1.5 trillion in cash and Rp956,49 billion non-cash. The fund will be used for the construction of new steel mills, namely Hot Strip Mill 2 (HSM 2) and power plant.
Finance Director KRAS Anggiasari Hindratmo said, Krakatau will use cash PMN Rp1.5 trillion. For non-cash PMN Rp956.49 billion is not in the form of money, because the value is only in the form of recording and administration while KRAS listed shares in the Indonesian Stock Exchange or the IPO in 2010.
The cash PMN mechanism is, KRAS will issue new shares or rights issue. The government will take a stake worth Rp1.5 trillion in the rights issue.
“Then Rp375 billion, we expect from public shareholders,” said Anggiasari, Monday (10/26/2015).
As a result, KRAS will receive funds amounting to Rp1.87 trillion from the rights issue. In order to optimally absorb public funds in the capital market, the rights issue is to be lined up with other SOEs.
“We are waiting for ratification of the State Budget 2016 in Parliament, then we also need to wait for the rights issue schedule, because many other state-owned enterprises that receive PMN. Chances are we going to get in the third quarter of 2016,” said Anggiasari.
In planning KRAS with fund Rp1.87 trillion, Rp1.2 trillion will be used to start construction of HSM 2, and the remaining Rp675 billion for the construction of power plant.
Anggiasari said the investment fund for the two projects reached Rp9 trillion, Rp7 trillion for HSM 2 and Rp2 trillion for power plant.
HSM 2 is a KRAS new plant for producing hot rolled coil (HRC) or hot rolled steel with a capacity of 1.5 million tons per year.
HSM 2 is expected to be ready for groundbreaking in November or December 2015, and is targeted to operate in 2017. When the plant is operating, the production capacity increased to 3.9 million tons per year. While power plants are built with a capacity of 1×150 MW.(qoi)