PT Inerco Global International and PT Artas Energi Petrogas (Indonesia Seamless Tube) signed a strategic operation cooperation agreement for a seamless pipe factory. The cooperation is valued at IDR 5 trillion to operate Southeast Asia's first seamless pipe factory, located in the Krakatau Steel Industrial Park in Cilegon, Banten. The cooperation agreement was signed by the CEO of PT Inerco Global International and the CEO of PT Artas Energi Petrogas. As the Indonesian government encourages oil exploration, Indonesia's oil and gas industry requires 500,000 tons of seamless steel pipes annually.
Indonesia currently still imports steel pipes worth IDR 15 trillion annually, and they hope the operation of the seamless pipe factory will save the country IDR 15 trillion in foreign exchange. This project aligns with President Jokowi's downstream vision for Indonesia to become an industrial country, so that added value circulates domestically. PT Artas Energi Petrogas has a production capacity of 250,000 tons per year, but he admitted that due to continued reliance on imported raw materials, the factory's domestic component level (TKDN) only reaches 43-50%, and they aim to achieve a TKDN value of up to 95%.