Indonesia builds first seamless pipe production facility in Southeast Asia

Indonesia is constructing the first seamless pipe factory in Southeast Asia, a partnership between PT Inerco Global International and PT Artas Energi Petrogas. The production facility will be located within the Krakatau Steel industrial complex in Cilegon, Banten. The project is valued at approximately $325 million.

The new facility is intended to reduce Indonesia’s reliance on steel pipe imports, which currently amount to around $96.9 million annually, and meet the growing demand for seamless pipes in the domestic oil and gas sector. With an annual capacity of 250,000 tonnes, the factory will significantly contribute to fulfilling the country’s demand, which stands at approximately 500,000 tonnes per year.

The initiative aligns with Indonesian President Joko Widodo’s vision to transform the country into an industrial nation. Another key focus of the project is to increase the local content level (TKDN) to as much as 95%, boosting domestic value creation and reducing dependency on imported raw materials.