ASIATODAY.ID, JAKARTA – Indonesia will soon have the largest seamless steel pipe factory in Southeast Asia. This factory was built by PT Artas Energi Petrogas and Inerco Global International (AEP-IGI) with an investment value of IDR 2.5 trillion.
This factory began construction in the Krakatau Industrial Area Cilegon, Banten, on November 6 2024. This project is expected to increase domestic steel pipe production and reduce dependence on imports, especially to meet the needs of the gas network in Indonesia.
This investment is in line with Indonesian President Prabowo Subianto’s program which makes downstreaming the key so that Indonesia can become a developed country.
Currently, the basic metals industry in Indonesia is experiencing significant growth, in line with increasing domestic and foreign demand, which shows increasingly strong investment and development of the national processing sector, especially in the downstream sector. As part of the basic metals industry, the pipe industry also continues to grow, especially supported by growth in the oil and gas sector.
“The oil and gas sector creates a strong supply chain, especially in supporting domestic seamless pipe production,” said Deputy Minister of Industry Faisol Riza at the inauguration of PT Artas Energi Petrogas’ seamless pipe factory, in Jakarta, Wednesday, November 6 2024.
On this occasion, he appreciated KSO PT Artas Energi Petrogas and Inerco Global International for building a drill pipe, OCTG, line pipe and mechanical tube production line with a capacity of 250,000 tons per year. This initiative reflects the synergy between the government and business actors in developing high quality products that are able to compete in the global market.
“With synergy between the government, the private sector and all stakeholders, the Ministry of Industry is optimistic that Indonesia will become the main producer of seamless pipes in Southeast Asia, and be able to meet the needs of the oil and gas sector independently,” he added.
Main Director of Indonesia Seamless Tube PT. Artas Energi Petrogas, Jose Antonio E Reyes, said that seamless pipes are available as finished products (end products) which are processed by domestic pipe manufacturers, so that their use can be optimized in an effort to meet the national demand for seamless steel pipe products.
“As one of the stakeholders in the oil and gas industry sector, we are committed to making Indonesia Seamless Tube (IST) a high quality, national pride seamless steel pipe product,” said Jose. (AT Network)
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