The Ministry of Industry inaugurated Southeast Asia’s largest seamless pipe factory on Wednesday, November 6, 2024, a joint operation between PT Artas Energi Petrogas and Inerco Global International.
Located in Cilegon, Banten, this new factory has an annual capacity of 250,000 tons, primarily producing drill pipes, OCTG (Oil Country Tubular Goods), line pipes, and mechanical tubes.
The factory represents a significant domestic investment estimated at Rp2.5 trillion, according to Jose Antonio Rayes, CEO of Indonesia Seamless Tube.
Deputy Minister of Industry Faisol Riza emphasized that this factory will enhance Indonesia’s domestic capacity to meet oil and gas (migas) industry needs, a crucial sector contributing Rp500 trillion (US$31.7 billion) (25 percent of the national GDP).
In Indonesia, there are currently 14 seamless pipe manufacturers with a combined capacity exceeding 800,000 tons per year, though utilization is around 40 percent.The factory operates two distinct production lines.
The hard rolling mills line, with a capacity of 200,000 tons per year, shapes metal products, while the heating line adds an additional 100,000 tons capacity.
Approximately 80-90 percent of production is expected to serve the oil and gas industry, with remaining products applicable for defense and other industrial uses.
By strengthening domestic manufacturing, the factory supports Indonesia’s ambitious 2030 oil and gas targets: producing one million barrels of oil and 12 billion cubic feet of gas per day. This facility positions Indonesia to reduce import reliance, improve energy security, and create jobs within the local economy.
