Indonesia has taken a significant step toward enhancing its industrial capabilities with the launch of its first seamless pipe manufacturing facility in Cilegon, Banten, marking a milestone for the Southeast Asian region. This ambitious project is a collaboration between Inerco Global International and PT Artas Energi Petrogas, who formed a strategic partnership in September 2023. The new facility, located within the Krakatau Steel industrial complex, represents an investment of approximately USD 325 million.
Once operational, the plant aims to significantly boost local steel production and reduce Indonesia’s reliance on imports. Currently, Indonesia’s oil and gas industry requires around 500,000 tons of seamless steel pipes annually. This facility will help meet this demand by producing high-quality pipes domestically, addressing a critical need in the nation's growing energy sector.
This venture not only underscores Indonesia’s commitment to building a self-sufficient industrial infrastructure but also positions the country as a pioneer in Southeast Asia’s steel pipe Industry.