DPR members accused Krakatau Steel of smuggling steel from China, causing the country to lose IDR 10 trillion

JAKARTA, KOMPAS.com – Member of Commission VII DPR RI from the Democratic Party faction, Muhammad Nasir, accused PT Krakatau Steel (Persero) Tbk smuggled steel products from China.

He admitted that he had once found a product from China that was stamped by Krakatau Steel, so that it was as if the steel was produced by the BUMN.

“This item is from China, has been stamped using Krakatau Steel,” said Nasir at the DPR RI Commission VII Hearing Meeting, Wednesday (24/3/2021).

Also read: Krakatau Steel Exports 20,000 Tons of Steel to Europe

Nasir also said that this practice made Krakatau Steel benefit from the difference between the price of Chinese steel production and that of the country.

According to him, this also cost the country up to Rp 10 trillion in losses.

“The price difference enjoyed by Krakatau Steel and tax evasion. Now the case at the Polda Metro is almost Rp. 10 trillion,” he said.

Responding to this, the President Director of Krakatau Steel Silmy Karim admitted that he was not aware of the case during the 2.5 years he served at the company.

However, Silmy will conduct further investigations, and is willing to support the related parties in the process of investigating the allegations.

Also read: Even though it continues to lose money, Krakatau Steel Receives an injection of Rp. 2.2 Trillion in the State Budget

“If there is something like that in order to support Pak Nasir, we will investigate it thoroughly. Because that means there is forgery,” he said.

Silmy emphasized that the company did not authorize Chinese companies to stamp the Krakatau Steel logo.

“Because so far, Krakatau Steel has not given the right to taste products in China, let alone the amount up to Rp 10 trillion,” he said.

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