GGRP Sees Growth Opportunities for Steel Industry in 2023 with Focus on ESG

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Receh.in - PT Gunung Raja Paksi Tbk (GGRP) is optimistic about the growth prospects of the steel industry in 2023. The company believes that the performance of the steel industry this year will be in line with the forecasted 5% growth of the economy.

"The company sees a huge potential for the use of steel in infrastructure development and the development of the National Capital City (IKN)," said Fedaus, the Corporate Affairs Director of GGRP, quoted from the 1st Session Closing IDX Channel on Friday (10/2/2023).

GGRP reports that the demand for steel in the IKN project could reach 9.2 million tons. The company hopes that the government will continue to monitor the use of steel in the IKN project, prioritizing domestically produced products with SNI standards and meeting the Domestic Content Level (TKDN) standards.

Meanwhile, the company has not yet specified its performance targets for this year because it is still conducting a financial performance audit for 2022. However, this year GGRP will focus on optimizing the use of its light section mill, which could contribute to the company's future revenue. This strategy aligns with the company's focus on Environmental, Social, and Governance (ESG).

For your information, GGRP recently received a USD 32 million sustainability linked loan from PT Bank Negara Indonesia Tbk (BBNI). The five-year loan will be used to finance one of GGRP's sustainability initiatives, including the recently inaugurated light section mill.

Fedaus emphasized that the cooperation with Bank BNI is one of the company's ESG-based business development commitments.