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gunungrajapaksi.com
PRIVATE AND CONFIDENTIAL
PUBLIC EXPOSE INSIDENTIL
Driving Future Growth Through Sustainable Steel: GRP’s Commitment to Long-Term Sustainability
Member of
STRICTLY CONFIDENTIAL
This information is confidential; It is not to be distributed to any party other than for the intended purposes. ©2024 PT Gunung Raja Paksi Tbk
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Disclaimer
This presentation has been prepared by PT Gunung Raja Paksi Tbk (“Company” or “GGRP”) and consists of written materials/slides for a
presentation concerning GGRP. By reviewing/attending this presentation, you agree to be bound by the following considerations:
No representation or warranty (express or implied) is made as to the fairness, accuracy, or completeness of the information contained in the
presentation or of the views, opinions and conclusions contained in the material. To the maximum extent permitted by law, GRP and its
related entities, and its respective Directors, officers, employees, agents and advisors disclaim any liability for any loss or damage arising
from any use of this material or its contents, including any error or omission there from, or otherwise arising in connection with it.
Some statements in this presentation are forward-looking statements. By their nature, forward-looking statements involve risk and
uncertainty because they relate to events and depend on circumstances that will occur in the future and may be outside GRP’s control.
Actual results and developments may differ materially from those expressed or implied in such statements because of a number of factors,
including levels of demand and market prices, the ability to produce and transport products profitably, the impact of foreign currency
exchange rates on market prices and operating costs, operational problems, political uncertainty and economic conditions in relevant areas
of the world, the actions of competitors, activities by governmental authorities such as changes in taxation or regulation.
Given these risks and uncertainties, undue reliance should not be placed on forward-looking statements which speak only as at the date of
the presentation. Subject to any continuing obligations under applicable law or any relevant stock exchange listing rules, GRP does not
undertake any obligation to publicly release any updates or revisions to any forward looking statements contained in this presentation,
whether as a result of any change in GRP’s expectations in relation to them, or any change in events, conditions or circumstances on which
any such statement is based.
Neither the provision of this document nor any information contained in this document or subsequently communicated to any person in
connection with this document is, or should be taken as, constituting the giving of investment advice to any person.
This is not an offeror invitation to invest in any securities of GRP. GRP does not undertake any obligation to update any information in this
presentation. All information herein should be regarded as indicative and for illustrative purposes only and is subject to change.
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Text
Topic Agenda
01. Company Overview
Unusual Market Activity and Suspended Shares of
02.
GRP
03. GRP Financial Highlight
GRP’s Upcoming Strategy
04.
Low Carbon Steel Project
3 gunungrajapaksi.com 3
PRIVATE AND CONFIDENTIAL
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Section 1: Shaping Tomorrow Company Overview
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Management Team
Board of Commissioners
Mr.
JAYA YULIANTO
Mr.
FREDDY KARYADI
Independent Commissioner
Independent Commissioner
Mr.
BUDI RAHARJO LEGOWO
President Commissioner
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Management Team
Board of Directors
Mr.
ROYMOND
Mr.
BIPLAP KUMAR DUTTA Director
Director
Mr.
FEDAUS
President Director
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Management Team
Key Management
President
Director Director
Director
Fedaus Biplab Kumar Roymond
Dutta
Chief
Chief Strategy Head of
Technology
Officer Sustainability
Officer
Michael Daniel Zhang Sheren
Jianwei Ma Omega 73
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Leading the Way as One of Indonesia’s Largest Private Steelmakers
PT Gunung Raja Paksi Tbk (GRP) is one of the largest steel producers in Indonesia, with over 50 years of
experience in producing high-quality steel.
Company Overview Company Product Overview
Flat Downstream
One of Indonesia's leading integrated steel
manufacturers, specializing in producing high-quality
steel products for various industrial applications.
The company drives innovation and sustainability by ▪ Dominates the domestic market • Strong competitive advantage in
with superior-quality slabs catering to a variety of downstream
using advanced technologies & efficient processes to products
meet the needs of both domestic and global markets. ▪ Example applications:
▪ Ship building plates • Example applications:
▪ Pressure vessel • Foundation piling
GRP, supported by a dedicated workforce and strong ▪ Storage tanks • Jetty construction
corporate values, is committed to excellence and ▪ Welded pipes • Steel structures
contributing to national economic growth. • Concrete walls/floor
Unparalleled track record is Established partnerships with End-customer profile
evidenced by 50 years of over 10 corporations across Distributor Manufacturer Others
experience by GRP and its the globe
affiliates
12%
Crude steel production Established prominence with 9%
capacity of 1.2 MTPA various consumers in over 40
countries
79%
Experienced management
team equipped with over 1,000 Local: 96%
qualified employees Export: 4% Long: 35% & Flat: 65%
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High-quality Steel for Building the Nation and Globally
Product portfolio that continues to grow and adapt to market needs
GUNUNG RAJA PAKSI FLAT STEEL PRODUCT
National and Regional
Steel Distributor &
Wholesaler
Building & Construction
Diversified Customer Base
Hot Roll Coil (HRC) Steel Plate Coil Plate
GUNUNG RAJA PAKSI DOWNSTREAM AND SERVICE CENTER (CUSTOM PRODUCT)
Steel Fabricator
Company
Engineering Procurement
Construction
Welded Beam Lipped Channel ERW Pipe Spiral Pipe SAW Cold Rolled Coil
Services:
▪ Cut to Shape
Others
▪ Plate Service Center (Plate Line): Bending, Drilling, Punching, Shearing, and Stamping
▪ Forming Service Center: Beveling, Cut to Length, Drilling, Forming, Punching &
Stamping
Our range of FLAT & INNOVATIVE products comes with globally acclaimed
10+ global standard
ENVIRONMENTAL PRODUCT DECLARATION (EPD) Certifications JIS-JQA, EN, ASTM SIRIM, SNI,etc.
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Proven track record of domestic and International Projects
We have a strong track record of supporting domestic and International corporations in serving variety of landmark projects
Domestic Projects International Projects
Bridges Industrial Plants Transport & Power Plants
Merah Putih Rangka (Truss) Well Harvest PLTMH Aek Silang II Jakarta Bandung Sydney Stadium Riverbend
Bridge Bridge Alumina Refinery Micro Hydropower High Speed Railway Residential Area
Light Rail Teluk Masjid PLTU Pangkalan Chemical Storage Jatigede Park Hyatt LAX Conrac
Transit Bridge Susu Tank Terminal Hydropower Plant
Pelengkung Holtekamp CNBM JV PLTU Java 7 Coal PLMTH Lau Gunung Bridgestone Dampier Western
Bentang Bridge Bridge Grinding Plant Power Plant Mini Hydro Power Project Australia
GRP | Corporate Planning & 10
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Sustainability Division
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Unlocking Vast Potential: Indonesian Steel Industry Poised for 4.8x Growth,
Driven by Low Per Capita Consumption Compared Other ASEAN Countries
Steel consumption as an economic Expansive Growth Potential for the Indonesian Steel Industry: Exploring Untapped Horizons Amidst
indicator Low Per Capita Consumption
Per Capita Steel Consumption: A Comparative Analysis Among Select Countries (Data Presented in kg)
Nascent Mature
1076
~18.3x opportunity for
growth to become
developed country
667
~4.8x
opportunity for
growth
• Steel consumption is one of the most 456
representative macroeconomic
indicators of a country’s production level.
273.5 283 291
• Economic development requires a set of 233.3
210.5
raw materials and steel is a fundamental
part of many production processes. 100
• Therefore, it can be considered a cross- 58.7
cutting element in various sectors of the
economy. Its consumption is synonymous
with production and is therefore an
elementary macroeconomic indicator that
must be taken into account.
Pop’n
278 112 33 70 5.6 99 334 123 1.450 51.8
(Million)
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Section 2:
Unusual Market Activity &
Shaping
Tomorrow Suspended of Shares of GRP
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Unusual Market Activity
Company Explanation of the
Unusual Market Activity
1. On July 26th, 2024, GGRP has obtained the approval
from the shareholders to conduct the capital reduction
in the form of reduction of share value from Rp 500 /
shares become Rp 140/shares. The difference from
capital reduction Rp 360/ shares would be distributed to
all shareholders including public shareholders.
2. On October 11th, GGRP announced the schedule and
procedure of the capital reduction, where the 640 – 24 Okt
beginning date for stock trading with new share 24
price (Rp 140/share) would be applied on November 1st 585/ 1 Nov 24
2024, recording date (for shareholders who will receive
the capital reduction fund) was on November 4th, 2024
and date of distribution of capital reduction would be
on November 8th, 2024
256 – 28 Okt
24
3. The unusual transaction happened due to the activity of 212 – 6 Des 24
capital reduction. The company has informed to the
public on the Explanation of Volatility transaction with
company letter No 113/GGRP-COS/XI/2024 on November
8th, 2024.
4. On the November 11th, 2024, the IDX has announced the
UMA for GGRP shares.
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Suspension of Shares
Company Explanation of the Suspension of
Shares
1. In order to cooling down, as a form of 800 31 Okt 2024:
Rp645/share
protection for Investors against a significant 700 B 4 Nov 2024:
cumulative share price decline of GGRP, the Rp530/share
600
IDX has temporarily suspended trading of the C
Company's shares in the Regular Market and 500
D
8 Nov 2024:
Rp500/ Rp352/share
Cash Market on November 19, 2024, through 400 A shares until
4 Jul 2024:
Exchange Letter No. Peng-SPT- 300 Rp426/share
4 Nov 2024
00143/BEI.WAS/11-2024 dated 19 November 19 Nov 2024:
200 Rp140/ share effective Rp212/share
2024. as per 5 Nov 2024
100 Harga
Nilai saham
Pasar Nilai Parnominal
Nilai Saham
2. The temporary suspension of trading of the 0
Jul 2024 Oct 2024 Nov 2024
Company's shares is intended to provide
sufficient time for market players to carefully
consider based on the information available
in each investment decision-making in the
Company's shares.
3. Through an electronic letter (e-mail) on
November 15, 2024, the Exchange requested
the Company to hold an Incidental Public
Expose, as a condition for reopening trading of
the Company's shares (unsuspend)
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Section 3: Shaping Tomorrow GRP Financial Highlights
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Shaping
Tomorrow
Macroeconomics and Political challenges in 2024: The surge in steel imports from China
and Election Year
Two key external factors contributing to the decline in steel demand
1. Chinese products are flooding the national steel market at low prices
Data in thousand CAGR
16% 5,311 • IISIA data shows that steel imports from
5,078
China to Indonesia have consistently
increased from 2020 to 2024, with a
4,170 CAGR of 16%.
3,754 • According to IISIA analysis, there are
suspicions of circumvention in steel
2,974 imports from China to Indonesia.
• Chinese steel products are
• Chinese steel exports faced approximately $100/MT cheaper
restrictions in the European and US compared to Indonesian products.
markets due to decarbonization and 1H 2020 1H 2021 1H 2022 1H 2023 1H 2024
import regulations introduced in 2023. 2. Presidential Election factor
• As a result, these steel products have
been redirected to Southeast Asia and Steel demand in Indonesia for 1H 2024 has been
other global markets. unstable due to delays in several government projects.
• Southeast Asia remains a key export
market for Chinese steel, with exports
These delays are primarily due to the presidential
to Thailand up 60%, Malaysia up 80%,
and significant increases to Indonesia election, with a leadership transition expected in
and Vietnam. October 2024.
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Shaping
Tomorrow
Financial Performance Summary Until Q3 2024
EBITDA from Profit before tax from Net profit from
continuing operations continuing operations continuing operations
USD50.1 million USD29.6 million USD31.0 million
18.7% EBITDA margin 11.0% Profit before tax margin 11.6% Net profit margin
54.6% yoy 553.2% yoy 780.8% yoy
Decrease in liabilities Equity growth
Along with the deconsolidation of the
The Company’s capital to
58.4%
10,2%
subsidiary accounts and the
settlement of trade payables and bank 5.6% consistently provide sustainable
benefits for all stakeholders
loans which resulted in a healthier
financial position of the Company
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Net sales from Sales volume from
continuing operations continuing operations
USD268.2 million 371.0 thousand tons
yoy yoy
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Shaping
Tomorrow
Based on the presented charts below, the Company maintains a healthy financial position, including its debt levels, even after the capital reduction. This
reflects the Company's strong capability to meet its obligations.
As of September 2024, the Company's Debt-to-Equity Ratio (DER) stands at 0.13x, significantly below the maximum capital management leverage ratio
limit of 2.50x.
Debt to Equity Ratio 1 (x) Debt Service Coverage Ratio (x)
Maximum leverage ratio limit
100% 2.50x 7.00x
90%
6.00x 5.74x
80%
5.00x
70%
The Company is able to
60% 4.00x record higher DSCR ratio
The Company has which shows the
50% successfully Company’s strong ability
maintained a low DER 3.00x to fulfil its obligation,
40% ratio, reflecting a including payment of
healthy financial principal and interest.
30% position, even after 2.00x
0.34x the capital reduction.
20% 1.13x
1.00x
10%
0.13x 0.18x 1.00x
0% 0.00x The minimum ratio limit as
stipulated in the bank
Sep 2023 Sep 2024 Sep 2024*) Sep 2023 Sep 2024 agreements.
*) The ratio is calculated using proforma financial statements, incorporating the effects of the capital reduction
1) The debt to equity ratio is defined as the total liabilities divided by the total equity.
2) The debt service coverage ratio is defined as EBITDA divided by the sum of finance costs and the short-term portion of interest-bearing long-term debt (including lease liabilities).
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Shaping
Tomorrow
Other Important Ratios
Current Ratio 1) Days Sales Outstanding 2) Days Payables Outstanding 3)
7.00x 8 Days 50.00x
6.50x The Company’s 8 Days The short Days Sales 47 Days
liquidity is strong, as Outstanding (DSO) ratio
indicated by the ratio 45.00x
indicates efficient
6.00x
7 Days 10 Days
values exceeding the management of
accounts receivable
40.00x
minimum 37 Days
6 Days compared to other
requirements set by 6 Days
5.00x companies in general, as
the banks, even after 35.00x
well as competitors within
considering the impact the same industry.
5 Days
of capital reduction 30.00x
4.00x
3.18x 4 Days 25.00x
3.00x
20.00x
3 Days
2.00x 15.00x
1.46x 2 Days
10.00x
1.00x 1.00 x 1 Days
The minimum ratio limit as 5.00x
stipulated in the bank
0.00x agreements. 0 Days 0.00x
Sep 2023 Sep 2024 Sep 2024*) Sep 2023 Sep 2024 Sep 2023 Sep 2024
The Company has successfully maintained
Days Payables Outstanding (DPO) ratio
*) The ratio is calculated using proforma financial statements, incorporating the effects of the capital reduction around one month, demonstrating a strong
1) Current asset divided by current liabilities ability to manage and fulfill the obligations
2) The average collection period from customers after sales. effectively.
(average receivables from prior year + this year) / revenue in current year x number of days in nine months
3) The average period taken to settle trade payables to suppliers
(average payables from prior year + this year) / cost of goods sold x number of days in nine months
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Section 4:
GRP’s Upcoming Strategy
Shaping
Tomorrow Low Carbon Steel Project
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Shaping Emerging Trends in the Global Steel Market
Tomorrow
Global Focus on Carbon Issue is Increasing, with CBAM Emerging as a Key
Protective Measure Against Non-Green Steel Products
This trend offers GRP a unique opportunity to capitalize on its first-mover advantage with Electric Arc Furnace (EAF) technology in
Indonesia, as global green industry standards emerge, enabling access to the growing green steel market
European Government Protection Is Intensifying U.S. Government Protection Is Increasing
Additional
Anti Dumping, Retaliation Global Anti Dumping, Import Duty EPD: Global
CBAM Import Duty
CVD, Safeguard Duties Adoption CVD, Safeguard 2008 25% Adoption
2024 + 25%
Trade Remedies: Target Steel Industry Capacity Utilization: Over 80%
• CBAM Will Serve as a New Protective Instrument for the European Steel
Industry. • With the Implementation of Trade Remedies, Section 232, and Section
• The Carbon Certificate Value (CBAM) Is Expected to Reach €300–$400 301 Tariffs, Total Duties on Steel Products from China Could Exceed
per Ton, Excluding Trade Remedy Costs. 200%.
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Shaping Emerging Trends in the Global Steel Market
Tomorrow
While the majority of steel producers (71.1%) still rely on blast furnaces,
there remains a limited number of low-carbon steel producers
Global Share of steel production The adoption of EAF (Green Steel Scrap to play a dominating role in evolving
by process with Intensity, 2022 Production) is expected to surge by 2050. global crude steel
BF-BOF EAF 100% Scrap DRI (EAF + OBF) Other
28.6
% 64%
2022
609 421%
2050 117
411
863 110%
1,347
Average BF-BOF
Average
DRI-EAF
Average
Scrap-EAF
756 -44%
CO2, Intensity
CO2, Intensity CO2, Intensity
2.33
1.37 0.68
2022 2050
Upcoming Transition from BF to EAF trend Focus on decarbonization
• The steel industry is shifting from traditional • The steel industry is responsible for 7-9% of global
BF methods to EAF production to reduce CO2 emissions.
carbon emissions and meet increasing • Steel industry needs to reduce its carbon footprint
demand. by more than 67% in the net-zero scenario, which is
GRP has adopted EAF technology,
• EAF's share of global steel production expected to drive to green steel production.
while most global steel producers expected to rise from 28% to 64% by 2050.
still rely on blast furnaces.
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Southeast Asian steel capacity is poised to expand unsustainably
Aggressive expansion of steelmaking capacity in
Region-wise EAF shares of steelmaking routes
Southeast Asia, predominantly via the BF & BOF route
The decarbonization of the steel sector is expected to drive an
China EU+UK USA
increase in the use of EAF’s globally. However, in Southeast Asia,
companies are favoring BF-BOF over EAF.
35% 82% 78%
Process 10% 61% 69%
Project Country Status Capacity Year
Type
Hoa Phat Dung Quat Vietnam Expansion BOF 5.9 2023
Panhua Misamis
Philippines Probable BOF 12.0 2023
Oriental
Japan, Korea, and Taiwan India Southeast Asia
HBIS-SteelAsia
Philippines Probable BOF 5.4 2024
Batangas
56% 35% 56%
Hebei Xin
GRP’s Upcoming Strategy
Malaysia Committed BOF 8.0 2024 67%
Wu'anSteel 29% 54%
FPG Ha Tinh
Vietnam Expansion BOF 5.9 2024
Vietnam
Megasteel Malaysia Maintenance EAF 7.3 2024
Change in EAF share
Eastern Steel Malaysia Expansion BOF 2.0 2024 Inner Pie: 2023 Outer Pie: 2050
Alliance Steel MCKIP Malaysia Expansion BOF 5.0 2026 Leading Decarbonization in Steel Sector
• Despite strong projections of rise in BF-BOF capacity in ASEAN-6 countries,
GRP is leading the change by taking bold steps to decarbonize its operations
Meranti Green Steel Thailand Probable EAF 2.0 2027
and reducing its carbon intensity through several strategic initiatives
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Sustainability: Growing regulatory pressures make sustainable innovations
essential for maintaining a competitive edge in the steel industry
Strategic Choices for GRP as Steel Suppliers First Mover Implications
1. Educate the value chain on
Product
the benefits of low-carbon
Differentiation
products
"First
Mover" Green
Revenue 2. Monetize low-carbon
offerings
Total Brand
Revenue Differentiation
3. Build a competitive edge by
"Wait marketing across all stages
and
see"
of the value chain
Grey
GRP’s Upcoming Strategy
Revenue 4. Enhance value chain control
to enable downstream
monetization
Operating Efficiency
Reduce Energy Consumption 5. Ensure disciplined value
Production
capture through KPI
Costs
Total Downsizing: Manpower Efficiency measurement and support
Costs systems
Cheaper Raw Material
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Product Compliance Regulation
To strengthen competitiveness in the domestic market and ensure compliance with government regulations, GRP products
are equipped with SNI Certificate (National Standards) and TKDN Certificate (Domestic Component Level). In addition to
that, Green Industry Standard for steel industry will increase the competitiveness.
TKDN Certificate Green Industry SNI Certificate
• The Domestic Component Level (TKDN) • The development of the Green Industry • The Indonesian National Standard (SNI)
is regulated under Presidential Standard (SIH) will prioritize several areas, regulation, as mandated by Indonesia
GRP’s Upcoming Strategy
Instruction No. 2 of 2022, which including Green Public Procurements, Law No. 20 of 2014, Article 24, enforces
mandates the use of local products which will safeguard domestic products the requirement for mandatory product
certified with a minimum TKDN value by meeting regulatory changes in export standardization.
40%. destination countries.
• In accordance with this regulation, GRP
• GRP products offering a range of TKDN • SIH is aimed for Green market fulfilment products have successfully obtained
certificate values starting from 49,31% to and adapt to global regulatory changes SNI certification, covering items such as
58,59% on average, thereby supporting HRC, CRC, HRP, General Construction
the national policy while enhancing our Carbon Steel Pipe, and Water Pipeline
competitiveness in public procurement Steel Pipe.
processes, specifically for procurement
by Government agency.
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GRP Existing Carbon Footprint profile
While Scope 1 will require continuous internal energy
GHG Inventory at Company’s level
improvement initiatives as explained in previous pages, for
Scope 2 GRP will need to work closely with existing energy
provider, below are the options available :
GHG Inventory 2023 PT GRP
Stationary Combustion
Mobile Combustion
24%
Usage of Limestone &
Dolomite Operational
Efficiency &
0% Usage of Carbon Electrode Improvement
2%
0%
4% Usage of Carbon Charge
Emission from
68% 2% Raw Material mix operation
0% GHG
Fugitive Emission
Emission Available options :
(BAU) 1. Purchased
Purchased Electricity renewable
GHG energy
Emission Emission
from certificates
Based on the above, Scope 1 contribute 32% of the current Purchased (RECs)
emission profile, with the majority coming from stationary Energy 2. Enter into
combustion (natural gas – 71% contributing to scope 1), Virtual PPA
usage of carbon charge and Raw material mix. While 3. Invest in Green
Scope 2 from purchased electricity contributed 68%. Energy
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GRP is aiming for the green premium:
A sustained and notable premium for niche green HRC
A sustained green premium in Asian HRC stands out within global Asian green steel premium pricing offers an advantage
green steel markets over conventional steel
Historical comparison price of green HRC and conventional HRC Scope 1, 2 and 3 emissions per
Green steel index*
Green steel base price, Northern Europe Green steel base price, Asia tonne of steel
HRC Import, Northern Europe HRC Import, Asia
North Europe
1100 Data in $/tonne
MB‐STE‐0904: Green steel, flat – Maximum 1.0-metric tonne CO2 per
rolled metric tonne of steel
891 MB‐STE‐0905: Green steel-based Maximum 1.0-metric tonne CO2 per
900 Gap price, HRC metric tonne of steel
773 Asia (Japan, Taiwan, Vietnam & South Korea)
700
684 MB‐STE‐0907: Green steel, flat – Maximum 1.3-metric tonne CO2 per
Gap rolled metric tonne of steel
GRP’s Upcoming Strategy
MB‐STE‐0908: Green steel-based Maximum 1.3-metric tonne CO2 per
515
price, HRC metric tonne of steel
500
21/01/2024 04/02/2024 18/02/2024 03/03/2024 17/03/2024 31/03/2024 14/04/2024 28/04/2024 12/05/2024
*Index nomenclature is taken from Fast Market
From January to May 2024, the European green steel premium These indexes track liquidity trends and standards in green
averaged $208 per tonne over non-green HRC, while the Asian premium steel, adjusting carbon thresholds or introducing new prices
ranged from $258 to $271 per tonne. in response to demand.
The green HRC price in Northern Europe was $100 to $200 higher than Asia is now entering the steel decarbonization movement
the Green Steel Base Price in Asia during the same period. with the launch of its first green steel premium.
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The high-level value chain overview for Phases 1 (2025-2026) and
Phase 2 (2026 - 2028) of the Low Carbon Steel Project
For 2025-2026, while the new rolling mill is under construction, GRP will focus on maximizing its existing assets and products
Feed Material Steelmaking Upstream Middlestream Plate and HRC Downstream Steel Production Equipment GRP’s Downstream Steel Products
1 2
Hot Rolling Coil CRC (CRM) CNP (FSC) Welded Beam
(HRC) Pipe Process Spiral Machine CNP Process
Scrap Processing EAF Slab PSM
Steelmaking Production
Plate 6 -Hi Reversible Cold Mill Tack Welding Machine
Replacement of EAF A Wide Range of Pipes
Rolling Mill Construction Process
EAF’s Side-Charge Type
Throughout 2025-2026, as GRP replaces the EAF and constructs the
new rolling mill, GRP will utilize existing assets and products while
strengthening processes, including securing steady scrap supply,
enhancing branding, and engaging with policymakers.
GRP’s Upcoming Strategy
2026 - 2028: GRP will leverage new rolling mill technology, launch new branding as a low-carbon steel producer, expand the
scrap supply network, launching new downstream products and upgrading existing machinery
EAF’s Side-Charge Type Batch/Endless Rolling Plate and HRC Add New Downstream Steel Equipment GRP’s Downstream Steel Products
Technologies
1 2
GRP’s Existing GRP’s Existing
Downstream Downstream
Steel Production Steel Product
Equipment Line
New Products
Downstream Machine
Initiatives
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Our upcoming products caters requirement of a wide
range of industries and end-use (1/2)
Automotive steel *) Internal part of automotive High strength & weather-resistant steel
Roof Structure Frame/Body Petrochemicals Shipbuilding/
Panels / Offshore Shipping
containers
Wheel Rims
Rail Cars Construction/
Suspension
system/Crash relevant Structural Component/Chassis/heavy Infrastructure
parts/ reinforced body load bearing parts/side rails and cross
panels members
Oil & Gas, Energy Markets, and Home & Commercial Appliances API & specialty steel
Pipeline in
Pre-fabricated
O&G, Hydraulic
Components
system
Heavy
Heavy duty
Machinery: Coal
trucks & trailers
Petroleum Mining and
Hydrogen (H2) others
Storage Tanks, Home Appliances
Storage Tank
Boilers
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Our upcoming products caters requirement of a wide
range of industries and end-use (2/2)
High Hole Expansion Steel HRC CQ & DP (2/2)
Aerospace/ Hazardous Metal
Defense material Power Plants
Fabrication/
container Welding
Transmission Electrical Heavy
Structural
tower* Equipment Equipment
Beam/ columns
*) support elements
HRC CQ & DP (1/2) Cold Rolled Basic Material
Switchgear and Agricultural Public Metal gates
circuit breaker equipment Infrastructure: and fences,
Road Barrie packaging
and others
Armored
Electrical Frame, Parts,
vehicles and HVAC systems
Enclosure Solar Panel
drilling rings
Station
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Decommissioning of
Blast Furnace
GRP leading the sustainability charge against all odds - Forging
ahead towards sustainability without government backing
European governments have announced US$ 9.43 bn. aid for …. In addition to the financial aid, Govt. is supporting domestic steel
decarbonization of the steel sector…… players through strong policy support
European Union: Introduction of CABM to offer a level playing field for local steel
1 companies and to restrict the dumping of excess capacity of high carbon steel in
Europe by China and other exporting nations
Bremen &
Eisenhu- Hamburg
United States: Announced USD 6 bn. grant to decarbonise hard-to-abate industries
ttenstadt Duisburg
$ 60 mn. 2 including steel. As a part of this program, 33 companies will receive a grant of USD
$ 2,710 mn. $ 2,167 mn. 500 mn. each for decarbonisation of their operations
$ 412 mn. France: As part of the France 2030 national investment plan, the French
UK 3 government will invest EUR 5.6 bn. to decarbonize domestic heavy industries,
including steel sectors.
Belgium Germany
$ 1,083 mn.
Slovakia Canada: The Canadian govt. announced to give Algoma Steel Inc. USD 324 million to
Port Talbot
France 4 retrofit their operations and phase out coal-fired steelmaking processes. The funding
$ 953 mn. will support the transition to EAF production.
Ghent
$ 303 mn.
Indonesian govt. does not have any scheme or policy to support domestic steel
players in their decarbonization journey
Dunkirk Against all odds, GRP forges ahead with its
Spain
sustainability objectives, undeterred by the
$ 921 mn. Kosice
absence of government funding. With a
Jigon
$ 325 mn. relentless spirit of innovation and daring
$ 487 mn. initiatives, we redefine the boundaries of what's
possible
GRP | Corporate Planning & 31
31
Sustainability Division
Page 32
Partnering with Development Finance Institutions (DFIs) to
Advance Decarbonization in Indonesia's Steel Sector
World Bank's IFC Marks Its First Loan Investment in Asia's
IFC Will Assist GRP in Entering the Global Green Steel Market
Steel Sector
1. IFC will support GRP in identifying new market
opportunities and exploring high-value steel products
compatible with EAF production
2. IFC will help GRP improve the performance of its current
EAF operations and identify the products and sectors willing
to pay a green premium on steel
3. IFC provides both investment and advisory assistance to
GRP’s Upcoming Strategy
support GRP in its journey to develop a commercially and
• IFC, a member of the World Bank Group and the
environmentally sustainable business
largest global development institution focused
on the private sector in emerging markets, is
providing up to $60 million to GRP
• The International Finance Corporation (IFC)
opens new tab to support GRP shift to lower-
carbon production and help it access green steel
markets
32
26
Page 33
Partnering with DFI to Advance Decarbonization in Indonesia's
Steel Sector
Strong focuses on technical assistance to enhance operational efficiencies, sustainability initiatives, and
governance practices
Advisory support with Technical Assistance over Energy Technical Assistance over
decarbonization experts Audit Activities Supply Chain Improvement
• Market Study input • Aims at enhancing our • Enhancing health & safety
• Scrap Management Strategy customers’ sustainability - with standards - to improve the
respect to commercial as well as health and safety conditions
• Decarbonisation workshops
social and environmental best of scrap collectors
including :
practices • Corruption risk mitigation
o CBAM Preparation
GRP’s Upcoming Strategy
o Steel Corporate • Addressing child labor risks:
Certification Identification & Assessing the extent and
Planning underlying causes of potential
forced and child labor.
o SBTi
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Page 34
New Government Sets Bold Agenda to Drive Economic Growth
One of example through steel demand from one of Housing Ministry, from 2025 – 2029 will require 19,1 million ton of steel
GRP’s Upcoming Strategy
GRP has signed a commitment letter and will work closely with Steel Construction Association to commit on the utilization of domestic
steel production.
34
28
Page 35
Green Industry Standard – Ministry of Industry
To support overall Indonesia Net Zero emission target by 2060 or faster, one of key initiatives conducted by
Indonesia government through Ministry of Industry is the establishment of Green Industry Standard.
• The development of the SIH will prioritize several areas, including Green Public Procurements, which will safeguard domestic
products by meeting regulatory changes in export destination countries, particularly in terms of the Carbon Border Adjustment
Mechanism.
• SIH will also be applied to Company Benefit Weight (Bobot Manfaat Perusahaan/BMP), as well as compliance with provisions that
address Domestic Content Levels (Tingkat Kandungan Dalam Negeri/TKDN).
2
1
GHG Emission
Increase Reduction
Competitiveness
GRP’s Upcoming Strategy
4 3
Green market
Green
fulfilment
Financing
and adapt to
global
regulatory
changes
35
29
Page 36
GRP achieves Gold designation for Green Label Indonesia
certification
GRP’s Upcoming Strategy
GRP officially achieved the Green Label Indonesia certificate from the Green Product Council Indonesia (GPCI) in
January 2024.
• The comprehensive assessment from production process to finished products includes 10 flagship steel
products such as hot rolled plate, hot rolled coil, coil plate, cold rolled coil, steel pipe galvanize, carbon steel pipe,
carbon steel square pipe, H-Beam, WF-Beam, and U-Channel.
• GRP was able to obtain a score 95%, thus qualifying for the GOLD designation. As a Type I ecolabel following the
ISO 12024-based development process, this in line with SDG goal no.12 on responsible production and
consumption.
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30
Page 37
GRP Supporting Indonesia’s Digital Growth with Decarbonized
Infrastructure
Rising demand for decarbonized infrastructure
development to support digitalization in Indonesia GRP’s Product Value Proposition
High Strength Low Alloy (HSLA):
(+) Stronger & Harder than ordinary carbon steel
(+) Ductile, easy to form, & weldable
Plate
(+) High Tensile Strength (450-610 MPa)
(+) Supported with Environmental Product Declaration with
>70% recycled content
(+) Supported with Gold Label Certification from GPCI2
Major potential market in the Indonesia decarbonization
agenda is related to the Data Center, the market is
expected to grow at a CAGR of over 10-15%
GRP’s Upcoming Strategy
(2022 to 2027).
Based on the Life
Cycle Assessment
The rapid expansion of data centers translates into Our product content
(LCA) method in
increased demand for infrastructure, including high-
accordance with ISO is using more than
quality construction materials like steel. These facilities
14040:2006, ISO 70% of recycled
require durable, scalable, and energy-efficient solutions.
14044:2006, and EN materials and
Potential customer : 15804:2012+A2:2019 qualified for global
Standards. standard.
*Project Microsoft Data Centre –
Lippo Cikarang, West Java
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Page 38
EXISTING INFORMATION
Traceability of
our product
Ensuring data transparency and product traceability is a
crucial aspect of our sustainability journey. At GRP, we
contribute to this effort through small initiatives, such as
including detailed product information on our products,
to enhance data transparency.
Please scan to try
FUTURE DEVELOPMENT
To include the following, but not limited to:
• Carbon footprint at product level
• Raw Material mix in the product
• Standard products
• Date of production
Page 39
Thank You!
www.gunungrajapaksi.com
PT Gunung Raja Paksi
Gunungrajapaksi.tbk
+622-1890-0111
gunungrajapaksi.com
39
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