The Ministry Of Industry Calls EPC Services An Important Role For New Industry Development

Head of the Standardization and Industrial Services Policy Agency (BSKJI) of the Ministry of Industry, Doddy Rahadi. (Photo: Doc. Ministry of Industry)

The Ministry of Industry (Kemenperin) said that the Engineering, Procurement, and Construction (EPC) industry services have an important role in the development of new industries and in industrial expansion.

According to BKPM data, in the first quarter of 2023, the processing industry is the main contributor to investment in Indonesia (42.4 percent). This indicates that EPC services engaged in the industrial sector have great market potential, both in the form of factory development and industrial equipment design," said Head of the Standardization and Industrial Services Policy Agency (BSKJI) of the Ministry of Industry Doddy Rahadi in a statement in Jakarta, quoted from Antara, Thursday, May 25.

In the EPC Industrial Services Optimization Group Discussion Forum (FGD) in Jakarta, Tuesday (23/5), Doddy said that EPC industrial services or Design Bangun and Kerrekayasa are also one of the priority industrial services developed as stated in Government Regulation Number 74 of 2022 concerning National Industrial Policy 2020-2024.

In addition, EPC industrial services are also very potential and significant in the program to Increase the Use of Domestic Products (P3DN) in Indonesia.

Through instructions on the use of domestic products for EPC work, all goods and services used will be required to meet the minimum value of the Domestic Component Level (TKDN) at certain limits.

Hal tersebut dapat memberikan multiplier effect kepada para pelaku industri supplier barang dan jasa yang menjadi komponen dari jasa industri EPC yang bersangkutan, sehingga pengumbangan dan penguatan struktur industri nasional perlu didorong lebih masif, imbuh Doddy.

Plt. Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Ignatius Warsito, said that the development of the petrochemical industry certainly cannot be separated from the role of EPC services.

From petrochemical industrial trees, it can be seen that the process that takes place within this scope is very large, from upstream to downstream.

The national EPC has the opportunity to play a role in the strategic projects of the national petrochemical industry launched in the 2020-2030 Petrochemical Industrial Development Roadmap which will encourage the industry to approach the location of its sources of raw materials and energy.

"Of course, with this movement, EPC services are needed that have the ability and competitiveness to participate in building the national petrochemical industry," said Warsito.

BSKJI Secretary E. Ratna Utarianingrum said that the implementation of the FGD Optimizing EPC Industrial Services was to further increase the contribution of National EPC industrial services in Indonesia's development, as well as determine strategies and efforts that must be made to create a better EPC service ecosystem and synergize with the P3DN program.

One of the strategic issues raised is the difficulty of companies in the local EPC ecosystem competing with foreign companies. For this reason, P3DN policies are needed, harmonization of TKDN regulations and increasing the ability of the domestic industry as an EPC support industry.

The implementation of this FGD is expected to increase the collaboration of all stakeholders in order to encourage the role of EPC industrial services to become the locomotive of national industrial development, so that a competitive national EPC industrial services ecosystem can be created at the global level.