The Ministry of Industry announced Indonesia’s potential to lead Southeast Asia in seamless steel pipe production, propelled by the inauguration of ASEAN’s first seamless pipe plant by PT Artas Energi Petrogas and Inerco Global International (KSO AEP IGI) at the Krakatau Industrial Estate, Cilegon, Banten. Deputy Minister of Industry Faisol Riza stated this milestone could solidify Indonesia’s role as the primary seamless pipe producer in ASEAN, further enhancing domestic energy security in line with President Prabowo Subianto’s vision. "Through government and private sector collaboration, we are confident Indonesia will become a major seamless pipe producer in Southeast Asia, fulfilling oil and gas sector needs independently," Riza emphasized at the 1st Indonesia Seamless Tube Summit 2024 in Jakarta on 6 November 2024.
The factory, with an annual production capacity of up to 250,000 tons, was established entirely through domestic investment. Riza applauded KSO PT Artas Energi Petrogas and Inerco Global International’s efforts in developing drill pipes, UCTG, line pipes, and mechanical tubes, all contributing to domestic oil and gas infrastructure. He highlighted the factory’s role in advancing the gas distribution network project (Jargas) to reduce Indonesia’s reliance on imported Liquefied Petroleum Gas (LPG). Meanwhile, PT Artas Energi Petrogas CEO Jose Antonio Reyes noted that the facility, built with an investment of IDR 2.5 trillion, can produce 200,000 tons and an additional 100,000 tons in heat treatment. Reyes emphasized that 80-90% of the pipes will serve the oil and gas sector, with further applications in industrial and defense fields, strengthening Indonesia’s self-reliance and regional influence in seamless pipe production.
