<![CDATA[This research aims to analyze relevant costs to support cost efficiency decisions through the alternative of making (in-house production) or buying from external parties at PT Krakatau Steel Tbk for the period of 2021–2025. This study is motivated by competition in the steel industry and the company's need to optimize production costs. The research method used is quantitative descriptive with a case study approach. Data is obtained through documentation of consolidated financial reports, the company's annual reports, and market reference prices for steel from SteelOrbis. The analysis is conducted by comparing the estimated internal production costs with the estimated purchase costs from external parties during the study period. The research results indicate that the buy alternative results in lower costs compared to the make alternative in each year of observation. The highest savings occurred in 2023, amounting to US$65.34 million, while the lowest savings occurred in 2021, amounting to US$5.43 million. Overall, the estimated savings during 2021–2025 reaches US$162.08 million. These results indicate that purchasing from external parties is more economical based on the data and assumptions used. However, the findings of this study are still simulations because the purchase cost calculations use market reference prices, not the actual transaction prices of the company, and do not account for all additional procurement costs. Therefore, the final decision needs to consider avoidable costs, transportation costs, product quality, supply continuity, and opportunity costs of production capacity.]]>
