Indonesia Establishes ASEAN's Largest Seamless Pipe Production Hub

Jakarta, VIVA – Indonesia now has the first and only seamless pipe factory in Southeast Asia, known as Indonesia Seamless Tube (IST), which is a joint venture (KSO) between Artas Energi Petrogas and Inerco Global International.

Deputy Minister of Industry, Faisol Riza, stated that the establishment of the IST factory was supported by the government as a concrete example of synergy between the government and business players.

“The production of the IST factory is capable of producing high-quality domestic products that meet high standards and can compete in the global market,” Riza said on Thursday (Oct 7).

Meanwhile, Chief Executive Officer of Inerco Global International, Hendrik Kawilarang Luntungan, emphasized that the IST factory will meet the domestic oil and gas industry’s demand, which reaches 500,000 tons per year.

“We invested IDR 2.5 trillion to bring this factory to operational status. It’s not a small amount for an investment. But for us, this is about building national industrialization, and we are committed to advancing a labor-intensive and high-tech industry,” Luntungan said in a statement.

He explained that the IST factory has an optimal production capacity of 300,000 tons per year, meaning IST can supply 60 percent of Indonesia's seamless pipe needs.

According to the Ministry of Industry’s data, IST has a Domestic Component Level value of 43 percent, demonstrating a strong commitment to fulfilling local content requirements in Indonesia.

Luntungan added that the foundation of this factory was inspired by Soemitro Djojohadikoesoemo, particularly in his concept of National Industrial Development.

“I was inspired by Mr. Cum (Soemitro Djojohadikoesoemo); he had a concept known as the Soemitro Plan. I see the establishment of this factory as a manifestation of his ideas,” he remarked.

He stressed that this aligns with the *Asta Cita* initiated by President Prabowo, as the IST factory will also create jobs, facilitate knowledge transfer, and serve as a foundation for the national industry.

“This will reduce production and distribution costs in the oil and gas sector, automatically strengthening energy resilience,” Luntungan concluded.

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29 Mei 2025