In 2017, Krakatau Steel want to reach break-even point

News24xx.com - State-owned steel maker PT Krakatau Steel aims to reach break-even point this year, following State-Owned Enterprises (SOE) Minister Rini Soemarno's instruction for all SOE's to avoid ending the year in the red.

Krakatau Steel president director Mas Wigrantoro Roes Setiyadi said on Sunday that the company was working very hard on processing backlog orders, which now stand at around 100,000 tons, to reach the break-even point.

The steelmaker also aims to cut down operating costs by 15 percent to improve its overall finances.

"There are a lot of budget components that can be saved," Wigrantoro said, adding that the government's move to slash gas prices to US$6 per million metric British thermal units had helped to further reduce operating costs.

"But that is [the price] from [state oil and gas firm] Pertamina. We are also lobbying [state gas distributor] Perusahaan Gas Negara to slash the gas price."

Krakatau has posted net losses every year since 2012. It ended last year with a $171.69 million loss, a reduction from the $320.03 million loss reported a year before.

The company’s revenue also stayed flat at $1.3 billion throughout 2016. “If the revenue stays [the same] while the costs come down, we can make a profit," he said.

The company also hopes to boost production capacity to 10 million tons per year from the current 4 million tons.