A large steel water tank installed at a coal power plant in Cilegon, West Java, Indonesia, faced stability and strength concerns due to significant tilting observed during a water load test. As a precautionary measure, the tank was emptied, and a thorough assessment was initiated to evaluate its fitness for purpose and to determine the strength and stability of both the tank and its foundation for long-term use. The site investigation identified uneven settlement and tilting of the foundation. To conduct a root cause analysis, finite element analysis was performed, with soil properties calibrated based on measured settlement. The mapped deformation of the tank's base was compared to industry standards such as API 653, EEMUA 159, and PIP STE02030. The analysis revealed that the failure resulted from an error in calculating the strength of the base soil during the design phase. Fortunately, the tank itself did not sustain significant damage, experiencing only rigid body displacement with minimal out-of-plane deformation, rendering repairs unnecessary. A proposed retrofit solution to enhance the strength of the soil beneath the tank is to implement soil improvement by concrete jet grouting. Once the soil characteristics have been improved, a comprehensive finite element analysis confirmed that both the steel water tank and the reinforced soil surrounding it will remain within acceptable stress and deformation levels for both short-term and long-term conditions. Field measurements further validate that the application of concrete jet grouting has effectively reduced the settlement potential of the tank.