Seamless steel tube producer PT Rainbow Tubulars Manufacture (RTM), a subsidiary of PT Sunindo Pratama (SUNI), has set the target for the new plant under construction to operate commercially in third quarter of 2025.
Rudy Barkeilona, RTM’s Commercial and Business Director, said the construction of the second plant aims to increase the company’s pipe production capacity to 60,000 to 70,000 tons per year.
“Plant-2 is not far from here. Approximately 1 km, which will be much larger later. So we increase our production level from 30,000 tons per year to 70,000 tons per year,” he said on Wednesday, November 20, 2024.
He is optimistic that with the second plant, RTM can meet domestic needs which are expected to increase, especially in line with the government’s plan to increase oil lifting in Indonesia.
The company also ensures that it will be ready to meet the domestic market in accordance with the target set by the Upstream Oil and Gas Regulatory Task Force (SKK Migas) to drill up to 1,000 new wells next year.
In addition, this new plant will provide additional capacity to meet export needs, which were previously stopped since 2023 because the company prioritized the domestic market.
“We are committed to continuously improving the quality and safety of work and running the company’s operations by prioritizing the principle of sustainability as a form of our responsibility to the environment and society,” Rudy said.
The support from the government for the use of domestic products is also a supporting factor for the development of this second factory.
Rudy cited that with an economic growth target of 8 percent, the government is encouraging an increase in the use of local products which are expected to create new jobs and provide a multiplier effect on other sectors.
Based in Batam, Riau Islands, RTM was established in 2016 with 100 percent foreign capital ownership. In 2019, PT Sunindo Pratama acquired 60 percent of RTM shares.
RTM’s initial production began in 2017 for the export market and in 2018 began supplying domestic needs.
After being listed on the Indonesia Stock Exchange on January 9, 2023, SUNI again acquired 39.6 percent of RTM shares, so that RTM’s ownership became 100 percent owned by a domestic company with a composition of shares owned of 99.96 percent by SUNI and 0.04 percent owned by PT Sinarindo Prima.
RTM is one of the supporting industries for the oil and gas industry and the only one that produces seamless pipes or Oil Country Tubular Goods (OCTG). The pipes produced already have API 5CT (Casing & Tubing) and API 5L (Line Pipe) certifications.
