Southeast Asia's First Seamless Tube Plant Commences Operations in Indonesia

PT Inerco Global International and PT Artas Energi Petrogas or Indonesia Seamless Tube signed a strategic operational cooperation agreement on seamless tube plant, which is valued at Rp 5 trillion to operate the first seamless tube plant in Southeast Asia, which is located in Chilgong City, Banten Province at the Krakatoa Steel Industrial Park, Chilgong, Banten.The signing of the cooperation agreement was signed by the CEO of PT Inerco Global International and the CEO of PT Artas Energi Petrogas. With the Indonesian government encouraging oil exploration, Indonesia's oil and gas industry requires 500,000 tons of seamless steel pipes annually.

Indonesia still imports Rp 15 trillion worth of steel pipes annually and they hope that the operation of the seamless plant will save the country Rp 15 trillion in foreign exchange. The project is in line with the downstream vision initiated by President Joko for Indonesia to become an industrialized country in order to increase value added to be circulated domestically.PT Artas Energi Petrogas has a production capacity of 250,000 tons per annum, although he admitted that the plant's level of domestically produced components (TKDN) is only up to 43-50% due to the raw materials that are still dependent on imports, and that they are targeting to achieve a TKDN values of up to 95%.