Both the firms have signed the agreement, under which Asmin will deliver 900,000 tons of coal per year to the steel maker.
Krakatau Steel president director Fazwar Bujang said the company will require the coking coal to help increase its steel production.
The coal will help boost steel production at Banten Krakatau and there will be an additional 1.2 million tons of steel production in 2015, said Fazwar.
Delivery of the coking coal is scheduled in 2014, reports jakartaglobe.com.