Jakarta. PT Krakatau Sarana Infrastruktur (KSI), is currently drafting plans for an initial public offering or IPO on the Indonesia Stock Exchange (IDX). A subsidiary of PT Krakatau Steel (Persero) Tbk. (KRAS), the target is to raise funds of up to US$ 200 million or IDR 3 trillion (exchange rate of IDR 15,000/dollar).

KRAS Main Director Purwono Widodo said of the targeted IPO funds, as much as IDR 2.1 trillion or 70% will be used for KSI business development. Among them, IDR 1.3 trillion will be used for the development of the Krakatau Urban Valley (KUV), in the form of purchasing Krakatau Steel residential land and buildings, consulting fees, and KUV development costs.

  "Another IDR 500 billion will be used for land acquisition and development in the Krakatau Industrial Area (KIK) 3," Purwono said as quoted by Bisnis this week.

He added that the funds will also be used for infrastructure development such as roads, drainage channels, gates, Wastewater Treatment Plant (WWTP), and others. Meanwhile, another IDR 300 billion is for the reclamation of 15 Land Management Rights (HPL) in Cilegon, Banten. "HPL 15 reclamation is valued at IDR 300 billion for consultant fees, permits, reclamation implementation, and others," he explained. (AM/LM)