Arcandra inaugurates valve manufacturing plant

Deputy Minister of Energy and Mineral Resources Arcandra Tahar officially inaugurated on Tuesday the operation of a valve manufacturing plant owned by PT Teknologi Rekayasa Katup (TRK) in Cikande, Serang Regency, Banten Province, as the government seeks to increase the use of local goods and services in energy projects under its local content policy.

Arcandra said as quoted by a ministry statement that under the government?s local content policy including in the oil and gas sector, the locally made goods/services must meet standard required by the industry, and secondly, the price must be competitive. ?If the two aspects can be fulfilled, the government?s job will be easier. We want to push industries to be efficient,? he said.

He said that the local content policy is also related to incentives in the application of gross split mechanism in the upstream oil and gas sector. He pointed out if local content in an upstream project reaches 30-50 percent, there will be incentive of two percent of gross revenue. ?Above 70 percent, the incentive is increased to four percent of the gross revenue,? he said.

He also expected TRK to become a pioneer for other domestic manufacturing industries to be engaged in the upstream oil and gas sector.

TRK, set up in 2015 and started operation in 2016, manufactured valve products, an important component in oil and gas, geothermal and petrochemical operations. The products have obtained the American Petroleum Institute (API) certification in terms of API Q1 Quality Management System and API6D Specification for Pipeline Valves.

Editing by Reiner Simanjuntak