Imeco Announces Expansion with Two New Factories in Batam to Support Oil and Gas Industry

Imeco Inter Sarana, a longstanding investor in Batam, has announced the expansion of its operations with the establishment of two new factories under its subsidiary, PT Karti Yasa Sarana, in collaboration with foreign firm Cameron SLB in Batam. This move is set to strengthen the upstream oil and gas support industry in the region.

Established in Batam in 1985, Imeco is expanding its footprint with the addition of two new manufacturing facilities, named Batam Technology Center. These factories will enhance the production capabilities for oil and gas industry equipment, particularly wellheads, with a significant portion of their products destined for export to Saudi Arabia.

Imeco’s introduction of the fifth and sixth factories underlines its commitment to Batam, recently designated as an oil base, attracting more oil and gas firms to the area.

The new factories will focus on producing wellheads for the oil and gas industry, with plans to continuously expand their facilities spanning over 2.5 hectares.

About 60% of the production from the new facilities is projected to be exported to Saudi Arabia, highlighting the global outreach of Batam’s manufacturing sector.

Alongside physical expansion, there is a strong emphasis on increasing the local content of the products manufactured, which aligns with government policies to boost domestic industries.

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The expansion has garnered support from local government officials who see it as a critical move to boost Batam’s economy and provide job opportunities.

Imeco’s expansion in Batam represents a growth in regional industrial capabilities that might attract more business and leisure travelers to the area. It also underlines the importance of Batam as a strategic location for manufacturing within Southeast Asia, enhancing its role in the global oil and gas supply chain.

Imeco’s initiative to open two new factories in Batam signifies a strategic expansion to support the oil and gas industry, focusing on increasing local content and fostering economic growth in the region. This development not only boosts local employment and technology transfer but also aligns with Indonesia’s broader goals of enhancing domestic industrial capabilities in strategic sectors.

Source: Bisnis, Dunia Energi (2024)