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.

The factory’s primary market is the oil and gas industry, which is projected to absorb 80-90% of the plant’s output. Additionally, the seamless pipes produced will also serve sectors such as industry and defense.

The factory features two distinct production lines. The first line is dedicated to hard rolling mills, with a production capacity of 200,000 tons per year.

The second line is focused on metal heating processes, capable of producing 100,000 tons annually. These lines allow the factory to meet the varied demands of different industries, while also ensuring high-quality output for critical sectors like oil and gas.

The seamless pipe factory aligns with Indonesia’s broader energy strategy, especially its ambitious targets for the oil and gas sector. By 2030, the government aims to produce one million barrels of oil per day and reach a natural gas output of 12 billion standard cubic feet per day. The new plant will play a key role in helping the country achieve these goals by providing reliable and domestically-produced piping for the sector.

With a focus on domestic production and technological advancements, the plant also supports the government’s goal of reducing dependency on imports. This move is seen as a step towards improving Indonesia’s industrial resilience and ensuring a stable supply of essential materials for key sectors. As part of its commitment to sustainable growth, the factory will also invest in green technologies to minimize environmental impact.

This initiative is expected to create thousands of jobs, both directly and indirectly, through its supply chain. The factory will require skilled workers in various fields, from manufacturing to technical support, contributing to the local economy. In addition, the presence of such a large-scale production facility could stimulate further investment in related industries.

The opening of this seamless pipe factory underscores Indonesia’s growing industrial capabilities and its determination to become a key player in Southeast Asia’s energy and manufacturing sectors. With domestic production now able to meet more of the country’s needs, Indonesia is poised for continued economic growth in the coming years. (Uki Ruknuddin)