Jakarta: Luxembourg based steel maker ArcelorMittal has raised its investment cap for new operations in Indonesia to $10 billion from $3 billion that includes bid to acquire shares in state-owned Krakatau Steel, media reports said Friday.

Representatives of the company have met with the minister of the state-owned enterprise, Sofyan Djalil, in Jakarta to learn more about the government's plan to privatise Krakatau.

Mittal's executive vice president for finance, mergers and acquisition, Sudhir Maheshwari, told reporters that during the meeting the firm had explained it would spend up to $10 billion.

"But we still don't know how much we will set aside for buying a stake in Krakatau Steel. We're still waiting for the government's decision on the privatisation plan," Maheshwari was quoted by The Jakarta Post as saying.

He said that the company was aiming to hold the maximum 49 percent stake in the company while also acquiring shares or a partnership with PT Aneka Tambang, the country's second largest nickel producer.

"For Mittal there is nothing more critical, nothing more emotional, nothing more sentimental than coming back to Indonesia," he said, nostalgically recalling how the company had its humble beginnings in Surabaya, East Java, in the seventies.