Segment 1 of the pipeline will be executed by KSO WIKA-NK, while Segment 2 will be handled by KSO Rabana-Abipraya-SBS-Singgar. The signing ceremony took place on 6 January 2026 at Fairfield By Marriot in Jakarta.
The ceremony was attended by PT Krakatau Steel Commercial Director and Business Development–Portfolio Manager Hernowo, and PT Krakatau Pipe Industries Acting Director of Manufacturing and Technology Erwin Saputra. Agung Kuswardono, Director of Oil and Gas Infrastructure Planning and Development, also witnessed the contract.
Hernowo emphasized that Krakatau Steel will play a central role in meeting the critical material needs of the project: “Through our subsidiary Krakatau Pipe Industries, we will supply more than 80,000 tons of steel pipe for this strategic project.”
Supporting national strategic energy projects with local producers
Steel pipe supply for the Dusem Project will be led by PT Krakatau Pipe Industries, which operates in steel pipe manufacturing and protective coating services, in collaboration with the Krakatau Steel Consortium and other local producers. ERW/HSAW steel pipes with API 5L X52 PSL 2 specifications will be used. The pipes, 20 inches in diameter, coated with 3LPE, and totaling 541 km in length, will ensure gas flow from Skg Belawan to Labuhan Batu Station and then to the Duri facilities, produced to meet high quality and safety standards.
Krakatau Steel: “We support energy security and local industry”
PT Krakatau Steel President Dr. Akbar Djohan stated that the company’s participation in the Dusem Project reflects support for national strategic goals. Djohan, who also serves as President of IISIA and ALFI/ILFA, stated: “Krakatau Steel Group’s role in the Dusem Project demonstrates the readiness of the national steel sector to support the development of strategic energy infrastructure. This contribution is aimed at strengthening national energy security and promoting the sustainable use of local steel products.”
Dusem project: a critical step in Indonesia’s energy transition
The Dusem Project is among national strategic projects and covers a 541 km natural gas transmission pipeline from Belawan to Duri in Sumatra. The pipeline is designed to provide gas flow from the Andaman Peninsula to Java. Construction is scheduled for 2025–2027. The project supports the vision of Indonesia’s President Prabowo Subianto to enhance energy security and strengthen national prosperity.
The contract signing marks the official launch of the Dusem Project, establishing strong cooperation between the national steel producer and EPC contractors, with work expected to be executed on schedule, in accordance with technical specifications, and meeting high safety and quality standards.
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