PT Krakatau Wajatama is a subsidiary of PT Krakatau Steel. PT Krakatau Wajatama founded in 1992. At the moment PT Krakatau Wajatama has become a leading steel producer in Indonesia. They produce high quality product such as Wide Flange, H-Beam, I-Beam, L-angels, Reinforcing Bars (Deformed and Plain Bars). Nowadays there's so many steel producer in Indonesia and the other biggest three competitors in field produce reinforcing bars are ; Master steel, Cakara Kencana Buana and PT. Interwood. These four companies sell the same product but with different prices. Product for sale prices play in Rp. 6000,- the difference only Rp..100 - Rp. 400 but for steel sales Rp. 100- to Rp. 400 is big cost, it is counted based on weight and length of these products. The customer buys steel not only 10 or 20 tons but upper hundreds of tons. Among four these companies, the most expensive price is PT Krakatau Wajatama with the rate range is Rp. 6400,- the second is Master Steel with the rate is Rp. 6300 then Kencana Cakra Buana with the rate is Rp. 6200 and in PT Interwood with the rate is Rp. 6100.

From the pre-determined price that turned out from each company, it can still discount up Rp. 300, but depend on the number of product purchase. Even though it's discount, the price of PT Krakatau Wajatama is still the most expensive. Although the price of PT. Krakatau Wajatama is more expensive than other competitors but it has a better quality, because reinforcing bars of PT Krakatau Wajatama using vanadium, while other competitors the raw material using tempcore.

Iron that contains Vanadium, the raw material consists 80% sponge iro, while the raw material of competitors consist scrap (scrap metal). And iron that contains Vanadium is more appropriate to be used on earthquake-resistant structures. But many customers are not concerned with quality, which is important for them is the cheap price. For them, the quality is second priority. Therefore, the target market of PT. Krakatau Wajatama is the high class people because it's not easy to sell it to middle to low class.

PT. Krakatau Wajatama is a government state-owned companies so the payment is already determined by using SKBDN (freeze money on the bank and guaranteed by the Bank). While others competitors mostly is private companies so the method of payment can be determined by the company using cash, SKBDN, check and provide terms of payment. But to overcome all of this, PT. Krakatau Wajatama has worked with distributors, so if there are customers that want to buy product by check (gyro) then the company direct the customer to buy to the particular distributor with a slightly different price but it can be by debt. But many of the customers prefer to buy a product directly to factory, because they think if you buy into certain distributors, the distributors will take the profit so, the price of product is more expensive. In the end of this problem, the writer will give some recommendations.

PT. Krakatau Wajatama has a good service because the sales are ready to directly meet the customers to explain the product if the customer requires an explanation. PT. Krakatau Wajatama also has two ways transportations: Loco and Franco. If using Loco, the extraction goods are form the warehouse until the truck only, after that the company no longer responsible anymore because it's become the responsibility between transportation and customer, but the price remains the same as regular price. But if you use the Franco where the extractions of goods are from the warehouse until the customer, it becomes the responsibility of the company and gets a warranty if the problem occurs in the trip. The price will be more expensive, because the transportation will be guaranteed by the company.



Research Location : PT Krakatau Wajatama



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