The First Seamless Pipe Factory In Southeast Asia Built In Cilegon

Photo: Doc. Antara

PT Inerco Global International signed a strategic operation collaboration with PT Artas Energi Petrogas or Indonesia Seamless Tube related to the seamless pipeline factory.

The cooperation is worth IDR 5 trillion, which is used to operate the first seamless pipeline factory in Southeast Asia. The factory operates at the Krakatau Steel Industry Complex, Cilegon City, Banten.

The signing of the cooperation was carried out by the CEO of PT Inerco Global International Hendrik Kawilarang Luntungan and CEO of PT Artas Energi Petrogas Jose Antonio Reyes.

"Along with the efforts to lift oil by the Indonesian government, 500 thousand tons of seamless steel pipes per year are needed for the oil and gas industry in Indonesia," said Hendrik in his statement in Jakarta, quoted from Antara, Thursday, August 29.

He explained that Indonesia is currently importing steel pipes per year worth IDR 15 trillion. Hendrik hopes that the operation of the seamless factory will save the country's foreign exchange of IDR 15 trillion.

"This project is in line with the downstream vision launched by President Jokowi, how Indonesia can become an industrial country so that the added value rotates domestically," he said.

Hendrik revealed that PT Artas Energi Petrogas has a production capability of 250 thousand tons per year. However, he acknowledged that the domestic component level (TKDN) of the factory had only reached 43-50 percent because the raw materials were still imported.

"Our target is how we can achieve a TKDN value of up to 95 percent," said Hendrik.

To note, Inerco is an experienced steel pipe provider in Indonesia.

Since its founding in 2008, the company has focused on selling electric resistance welding (EW) pipe products and seamless pipes for oil and gas drilling and distribution. Inerco's main customers are top oil and gas companies such as Chevron, Pertamina, and others.