[1] The factory is set on a 280-hectare (700-acre) plot in the western end of Banten and adjacent to the Sunda Strait, and where the Krakatoa volcano and island from which the company takes its name are located.

The company, which operates in Cilegon, Banten, was originally formed as a manifestation of the Trikora Steel Project, which was initiated by President Sukarno in 1960 to have a steel plant capable of supporting the development of an independent, high value-added national industry and influencing national economic development.

When it was formed on May 20, 1962, the company, which was formerly called the Cilegon Steel Mill, was officially established in cooperation with a Soviet all-union foreign trade organization.

It was only before entering the early 1970s, the factory unit resumed construction and officially operated on August 31, 1970 under the name Krakatau Steel.

Long before the idea of the national steel industry emerged, the forerunner to the processing of iron ore had been born since 1861.

However, the number of turbulent wars and physical revolution resulted in the pioneering of the steel industry had stopped.

Indonesia, which is actively undertaking development, needs the presence of an iron ore processing industry.

The State Design Bureau cooperated with the West German consulting agency WEDEXRO (West German Ingeniur Bureau) of Walter Rohland[3] to pioneer the steel industry called the "Trikora Steel Project".

After the feasibility study was completed, Cilegon was chosen as a place for processing and production of iron ore processed products because it has advantages such as large land that does not convert agricultural land, there are abundant water sources, affordable access from various islands to bring scrap metal through the port of Merak.

The establishment of Krakatau Steel was validated by Tan Thong Kie Notary Deed Number 34, on October 23, 1971 in Jakarta.

The progress and hard work can be seen from a series of inauguration of factory units and supporting facilities.

Two years later, officially the construction of the Sponge Iron factory, the Steel Billet plant, the Wire Rod factory, the 400 MW Steam Power Plant, the water treatment center and PT KHI Pipe were completed and fully operational.

PT IndoJapan Steel Center On November 10, 2010, in the midst of turbulent market conditions, PT Krakatau Steel (Persero) managed to become a publicly listed company by carrying out an initial public offering (IPO) and listing its shares on the Indonesian Stock Exchange.