Indonesia's Steel Industry Meets Demands from Warships to Oil and Gas Platforms
The Indonesian-Korean joint venture Krakatau Posco is involved in the Frigate Combatant project, the first warship designed and built domestically by PT PAL Indonesia. Indonesian industry meets the need for specialty steel for the construction of warships and offshore structures.
According to Krakatau Posco management, the ship's steel is made of high-strength marine steel (LR). LR marine steel has high tensile strength and good weldability, making it suitable for main ship hull structures. This is a significant advancement towards the independence of the maritime defense industry.
Furthermore, Krakatau Posco's marine-grade steel is also used to build logistics vessels such as the SEJAHTERA 35, built by PT Bandar Victory Shipyard, and a 115,000 DWT-class tanker export project built by Hyundai Vietnam Shipbuilding.
Management stated in a written statement on Monday (June 30, 2025), "This proves that the quality of Indonesian-produced steel is competitive in the global market."
In addition, Krakatau Posco manufactures offshore structural plates that meet international standards such as API 2W Grade 50, EN S355MLO, and other standards tailored to customer specifications for the construction of offshore structures, such as oil and gas drilling platforms and production platforms.
According to management, this steelmaking process utilizes thermomechanically controlled processing (TMCP) technology with accelerated heating facilities. This technology produces steel with a finer grain size, greater strength, and excellent toughness.
This makes it ideal for use in offshore energy projects.
Furthermore, Krakatau Posco's marine-grade steel can be utilized for the development of CCS/CCUS (Carbon Capture, Utilization, and Storage) projects, which are a crucial part of Indonesia's energy transition toward achieving Indonesia's 2060 emission reduction target.
For subsea structures that store carbon, high-strength steel and low-temperature toughness (down to -40 degrees Celsius) are qualities that Krakatau Posco can meet.
Strategic Projects Using Krakatau Posco Offshore Steel:
- Bukit Tua Phase 2 / Petronas - EN-S355G series (MLO) - 2020
- Malong-Belida Field / MEDCO E&P NATUNA - API 2W Grade 50 - 2021
- West Belut Define Project / MEDCO E&P NATUNA - API 2W Grade 50 - 2022
- Manpatu Project / Pertamina Hulu Mahakam - S355K series - 2024
- Hidayah Field / Petronas - EN-S355G series (MLO) - 2024
