The biggest and oldest tubular goods producer in Batam, Indonesia, PT Citra Tubindo Tbk focuses on new sources of income from renewable sources, particularly geothermal energy.
President Director Fajar Wahyudi said that the company has been expanding its renewable energy activities to secure new income streams in addition to the upstream oil and gas sector.
“As the geothermal industry grows, we have to be able to produce high standard pipes that meet the characteristic and requirement of this sector,” he said on June 24, 2022.
Citra Tubindo is a partner of PT Geo Dipa Energy in developing geothermal energy in Indonesia.
Wahyudi said the company has provided opportunities to develop geothermal energy. He believes the industry is increasingly developed and has significant potential.
“State-owned enterprises also plan to combine three state-owned geothermal companies into one state-owned geothermal holding,” he added.
According to Citra Tubindo, external factors have impacted the industry, thus affected the company’s performance. These factors include the increasing price of raw materials and the current condition of the global logistics industry.
Based on projections from the International Monetary Fund (IMF) – which indicates that Indonesia’s economy will recover in 2022 with 5.6 percent growth – Wahyudi is optimistic that the company’s performance will improve in the remaining year.
Oil price will rise following the trend of economic growth.
Meanwhile, Indonesia’s Energy and Mineral Resources Ministry will submit bids or offers for 12 oil and gas blocks this year.
“We believe the company can sustain its growth because it has secured some upstream oil and gas infrastructure projects,” Wahyudi said.
Citra Tubindo was established on August 23, 1983, in line with the Domestic Investment (PMDN) rules. The company’s headquarters and factory are located in Batam, which is the country’s closest part to Singapore.
The company’s objectives are to conduct trade and industry business activities and provide oil, gas, and mining industry services. The company manufactures, provides services, and repairs equipment and accessories to support the oil and gas industry to accomplish these objectives.
In November 1989, the company listed its shares on the Indonesia Stock Exchange (formerly the Jakarta Stock Exchange and Surabaya Stock Exchange).
As part of its activities, the company offers seamless “Oil Country Tubular Goods” (OCTG), Line Pipe, and Drill Pipe to the oil and gas industries. This includes API seamless pipes, Premium Connection seamless pipes, Seamless Drill Pipe, and Seamless Line Pipe.