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Indonesia’s steel manufacturer PT Krakatau Steel (Persero) has signed a deal with PT Pertamina Gas (Pertagas) to supply 53,600mt of hot rolled steel coils for construction of 370 km of Rokan Block Oil pipeline in Riau. 


This project is expected to be completed by the second half of 2021 and Persero will confirm the delivery lead time is around four to six months to ensure the project finishes on time. Pertagas will save close to 16pc of its costs by buying material directly from Persero and will help in revival of downstream industry and support the national economy. 


According to Pertagas’s managing director Wiko Migantoro, this project holds strategic national importance and is an effort to maintain oil production at Rokan Block while its management changes from Chevron Pacific Indonesia to Pertagas in 2021. 


Persero’s managing director, Slimy Karim added that this collaboration is in line with the country’s President’s direction to use domestic products in national infrastructure development. 

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