JAKARTA, RAKYAT NEWS – Indonesia has officially inaugurated the largest seamless pipe factory in Southeast Asia, a significant milestone in the country’s industrial development. The plant, which is the result of a partnership between PT Artas Energi Petrogas and Inerco Global International, was launched on November 6, 2024, by the Indonesian Ministry of Industry. The factory is expected to play a crucial role in supporting the country’s energy and industrial sectors.

The facility, located in Jakarta, features a production capacity of 250,000 tons per year. This includes various types of pipes, such as drill pipes, OCTG (oil country tubular goods), line pipes, and mechanical tubes. The plant’s establishment is entirely funded by domestic investments, reflecting the growing importance of local manufacturing in Indonesia’s economy. Vice Minister of Industry Faisol Riza emphasized the strategic importance of the seamless pipe industry for Indonesia’s oil and gas sector.

“Seamless pipes are essential for the oil and gas industry, which is a major contributor to Indonesia’s economy, accounting for 25% of the country’s GDP, or about Rp 500 trillion,” Faisol stated during the inauguration ceremony.

Indonesia now has 14 domestic producers of seamless pipes, with a combined capacity of over 800,000 tons per year. However, current production utilization is only around 40%, suggesting room for growth in this vital sector.

The new factory is expected to significantly boost the domestic supply of seamless pipes, which are crucial for the oil and gas industry. José Antonio Rayes, CEO of PT Artas Energi Petrogas, noted that the plant’s investment was substantial, amounting to Rp 2.5 trillion.

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