Synergy Of SOEs, Krakatau Steel And Pertagas Establish Material Provision Cooperation, Strengthen Fuel Pipanization Infrastructure For National Energy Security

President Director of Krakatau Steel M. Akbar Djohan and President Director of Pertagas Gamal Imam Santoso sign the MoU. (Doc PGN)

JAKARTA - PT Krakatau Steel (Persero) Tbk and PT Pertamina Gas (Pertagas) signed an umbrella contract to provide fuel oil pipeline services (BBM) from the Cikampek Fuel Terminal to Plumpang Fuel Terminal at the 2024 Indonesia Construction Exhibition on November 6, 2024 at ICE BSD, South Tangerang, Banten. The signing was carried out by Plt. President Director of Krakatau Steel M. Akbar Djohan and President Director of Pertagas Gamal Imam Santoso.

"This agreement was made by Krakatau Steel together with a pipeline manufacturer that will supply steel pipes for approximately 102 km," explained Plt. President Director of Krakatau Steel M. Akbar Djohan.

The steel pipe produced by PT Krakatau Pipe Industries with steel raw materials Hot Rolled Coil (HRC) from Krakatau Steel uses a steel pipe with a diameter of 16 Inch Grade API (American Petroleum Institute) 5L. The Cikampek-Plumpang BBM pipeline project will later carry fuel from the PT Kilang Oil Refinery Pertamina Internasional Balongan, Indramayu, through the West Java Balongan BBM Terminal to Cikampek BBM Terminal and Plumpang BBM Terminal with a volume of about 4.6 million kilo liters/year.

Pertagas President Director Gamal Imam Santoso expressed his commitment to support national energy security through the use of domestic resources and products.

"This collaboration is not only about meeting our company's internal needs, but also a tangible manifestation to strengthen the synergy between BUMN and its subsidiaries in order to increase the use of Domestic Products (P3DN)," said Gamal.

Gamal emphasized that this collaboration is a real effort to support the government's program to advance the domestic industry, which is an important pillar in infrastructure development and national energy security. This collaboration also contributes to the growth of a more sustainable national industry.

As part of Pertamina's Gas Subholding, Pertagas has a strategic role in strengthening national energy security through the development and management of reliable energy distribution infrastructure. By managing and developing a pipeline system for fuel distribution, Pertagas contributes to ensuring smooth running of vital energy that supports important sectors in Indonesia, such as transportation, industry, and electricity. Add Gamal.

Sinergi antara Pertagas dan Krakatau Steel ini juga memperkuat komitmen keduanya terhadap pertumbuhan industri nasional yang berkelanjutan. Krakatau Steel dan Pertagas sebelumnya telah menjalin kerja sama dalam pengadaan material pipa untuk berbagai proyek strategis, antara lain pembangunan pipa minyak Blok Rokan, Riau, sebanyak 93,600 ton HRC pada tahun 2019 dan 2020.

"In 2022, Krakatau Steel and Pertagas will synergize again through the procurement of materials for the construction of the Seinpah-Balikpapan gas pipeline, East Kalimantan, for 78 kilometers," said Acting President Director of Krakatau Steel, M. Akbar Djohan.

Akbar Djohan also emphasized that Krakatau Steel Group is committed to meeting the raw materials needs of national strategic projects through timely delivery and the provision of competitive high-quality steel products.

"This collaboration is a significant step to support the achievement of the vision of Indonesia Gold 2045 through the development of sustainable, safe and efficient energy infrastructure," added Akbar.

This Cikampek-Plumpang BBM pipeline project is an important part in efforts to strengthen the national energy distribution system, maintain the stability of energy supply, and support the government's energy security program. Close Gamal

Through this collaboration, Krakatau Steel and Pertagas are committed to continuing to support national energy security through reliable infrastructure development, while strengthening active roles in advancing domestic industries. (ADV)