The Minister Of Industry Has Inaugurated The First Seamless Pipe Factory In Southeast Asia

Dok/Kemenperin

The Minister Of Industry Has Inaugurated The First Seamless Pipe Factory In Southeast Asia

Friday, 08 Nov 2024

The Ministry of Industry (Kemenperin) is actively working to boost the national economy. Following the statement by Indonesian President Prabowo Subianto that downstream processing is a strategic key for Indonesia to become a developed nation, Kemenperin is closely monitoring the performance of the industrial processing sector in Indonesia, which is showing positive trends despite facing various global challenges.

The basic metal industry has seen significant growth due to rising demand both domestically and internationally, indicating stronger investment and development in the national processing sector, especially in downstream activities. Within the basic metal industry, the pipe industry is also expanding, particularly supported by growth in the oil and gas sector.

Therefore, collaboration between the oil and gas sector and the processing industry is crucial for enhancing the independence and competitiveness of the national industry. "The oil and gas sector creates a strong supply chain, especially in supporting the production of seamless pipes domestically," said Deputy Minister of Industry Faisol Riza at the inauguration of the seamless pipe factory owned by PT Artas Energi Petrogas in Jakarta on Wednesday (November 6).

He mentioned that Kemenperin is also actively collaborating with the Ministry of Energy and Mineral Resources through the Domestic Product Appreciation Book (APDN) platform, which records the Domestic Component Level (TKDN) value for operational products in the oil and gas sector. "Increasing the use of TKDN-certified products not only adds value domestically but also creates jobs and improves the quality of human resources," Faisol explained.

During the event, the Deputy Minister praised the joint venture of PT Artas Energi Petrogas and Inerco Global International for establishing a production line for drill pipes, OCTG, line pipes, and mechanical tubes with a capacity of 250,000 tons per year, all funded through domestic investment.

This initiative shows the collaboration between the government and businesses in creating high-quality products that can compete in the global market.

“With the cooperation of the government, private sector, and all stakeholders, the Ministry of Industry is confident that Indonesia will become a leading producer of seamless pipes in Southeast Asia and can independently meet the needs of the oil and gas sector,” said the Deputy Minister of Industry.

Jose Antonio E Reyes, the CEO of Indonesia Seamless Tube PT. Artas Energi Petrogas, stated that seamless pipes are finished products processed by local manufacturers to optimize their use in meeting the national demand for seamless steel pipes.

“As a key stakeholder in the oil and gas industry, we are committed to making Indonesia Seamless Tube (IST) a source of pride for high-quality seamless steel pipes,” said Jose. Moreover, with optimal local content achievement, we aim to support the development and maintenance of the oil and gas sector, contributing to national energy security and independence.

The inauguration of the seamless pipe factory is part of the Indonesia Seamless Tube Summit, which includes discussions on policies for protecting domestic products and the commitment to using seamless pipes in the oil and gas sector. This event is expected to provide a platform for all stakeholders to share experiences and strengthen their joint commitment to enhancing the competitiveness of the national industry.

business