Krakatau Steel, Indonesia’s state-owned steel maker, is to postpone its $330m initial public offering until next year and might cancel it unless market conditions improve significantly, its chief executive, Fazwar Bujang, said on Wednesday.

Mr Bujang told the Financial Times that the global financial turbulence, which has seen the Jakarta market fall 45 per cent this year and the rupiah weaken 7.5 per cent in the past month, meant the company would have to be “flexible” in deciding how to expand from its 2.5m tonnes-a-year capacity.