BUMN Synergy, Krakatau Steel and Pertagas Establish Cooperation in Material Provision, Strengthen Fuel Pipeline Infrastructure for National Energy Security

Jakarta – PT Krakatau Steel (Persero) Tbk and PT Pertamina Gas (Pertagas) signed an umbrella contract for the provision of fuel oil (BBM) pipeline services from the Cikampek BBM Terminal to the Plumpang BBM Terminal at the 2024 Indonesian Construction Exhibition on November 6, 2024 at ICE BSD, South Tangerang, Banten. The signing was carried out by Acting President Director of Krakatau Steel M. Akbar Djohan and President Director of Pertagas Gamal Imam Santoso.

"This agreement was made by Krakatau Steel together with a pipe manufacturer that will supply approximately 102 km of steel pipes," explained Acting President Director of Krakatau Steel M. Akbar Djohan.

The steel pipes produced by PT Krakatau Pipe Industries with Hot Rolled Coil (HRC) steel raw materials from Krakatau Steel use a type of steel pipe with a diameter of 16 Inch Grade API (American Petroleum Institute) 5L. The Cikampek-Plumpang fuel pipeline project will later carry fuel from the PT Kilang Pertamina Internasional Balongan Oil Refinery, Indramayu, via the Balongan West Java Fuel Terminal to the Cikampek Fuel Terminal and Plumpang Fuel Terminal with a volume of around 4.6 million kiloliters/year.

Pertagas President Director Gamal Imam Santoso expressed his commitment to supporting national energy security through the utilization of domestic resources and products.

"This collaboration is not only about meeting the internal needs of our company, but also as a real manifestation to strengthen the synergy between BUMN and its subsidiaries in order to increase the Use of Domestic Products (P3DN)," said Gamal.

Gamal emphasized that this collaboration is a real effort to support the government's program to advance the domestic industry, which is an important pillar in the development of infrastructure and national energy security. This collaboration also contributes to the growth of a more sustainable national industry.

"As part of the Pertamina Gas Sub Holding, Pertagas has a strategic role in strengthening national energy security through the development and management of reliable energy distribution infrastructure. By managing and developing a pipeline system for fuel distribution, Pertagas contributes to ensuring the smooth flow of vital energy that supports important sectors in Indonesia, such as transportation, industry, and electricity.” Gamal added.

The synergy between Pertagas and Krakatau Steel also strengthens their commitment to sustainable national industrial growth. Krakatau Steel and Pertagas have previously collaborated in the procurement of pipe materials for various strategic projects, including the construction of the Rokan Block oil pipeline, Riau, as much as 93,600 tons of HRC in 2019 and 2020.

“In 2022, Krakatau Steel and Pertagas will synergize again through the procurement of materials for the construction of the Senipah-Balikpapan gas pipeline, East Kalimantan, 78 kilometers long,” said Acting President Director of Krakatau Steel, M. Akbar Djohan.

Akbar Djohan also emphasized that Krakatau Steel Group is committed to meeting the raw material needs of national strategic projects through timely delivery and the provision of competitive high-quality steel products.

"This collaboration is a significant step to support the achievement of the vision of Indonesia Emas 2045 through the development of sustainable, safe, and efficient energy infrastructure," added Akbar.

"The Cikampek-Plumpang fuel pipeline project is an important part of efforts to strengthen the national energy distribution system, maintain the stability of energy supply, and support the government's energy security program." Gamal concluded

Through this collaboration, Krakatau Steel and Pertagas are committed to continuing to support national energy security through the development of reliable infrastructure, while strengthening their active role in advancing domestic industry.