PTPP and Krakatau Steel are Still Fighting over KTI, What's the

Problem?
30 October 2019

Jakarta, CNBC Indonesia- SOE issuersPT PP Tbk. (PTPP)mentioned the company's plan to
acquire PT Krakatau Tirta Industri (KTI), a subsidiaryPT Krakatau Steel Tbk. (KRAS), so far there
has been no progress.

Even though PTPP has prepared fresh funds to take over the company, which is estimated to
have a total valuation of Rp. 800 billion.

PTPP President Director Lukman Hidayat said the two companies were still debating the
amount of ownership. However, it is not clear when the deadline given byKrakatoa Steelas the
holding company in divesting this subsidiary.

"Not yet negotiable, but an estimate of around Rp. 800 billion. An estimate, you know, because
yesterday [the valuation] was not finished. We'll just have to wait for the target to be clear. If he
[KRAS management] doesn't target it, he won't find it. We hope that there will be the same
understanding if we want to develop this SPAM [Drinking Water Supply System] business," said
Lukman at the Ministry of BUMN, Thursday (3/10/2019).

He explained, like PTPP, KRAS still wanted to become the majority shareholder in the
company.

PTPP itself is already prepared with the SPAM development plan so that KTI's business will no
longer only be concentrated in Cilegon, Banten, but also other regions. Development plans
have been prepared for various areas such as Gresik, Bali, Bekasi, Tangerang to Pekanbaru.

"And we will continue to develop it, for us to want to take over him [KTI], of course we want to
take the majority for us to develop again," he explained.

The company's official website notes that KTI is a company founded on February 28, 1996 with
99.99% of its shares owned by KRAS and 0.01% by PT Krakatau Industrial Estate Cilegon (PT
KIEC). KTI's business focus is providing clean water, demineralized water and wastewater
treatment services.

KTI has also served PT Krakatau Posco, PT Asahimas Chemical, PT Chandra Asri
Petrochemical Tbk (TPIA), and various other companies in the strategic industrial area of
Cilegon City.

Source:https://www.cnbcindonesia.com/market/20191003181437-17-104283/ptpp-dan-
krakatau-steel-masih-rebutan-kti-what-problems