Bakrie Subsidiary Eyes Masela Block Pipe Network Project

KATADATA - Although the government has not finalised the development scheme for the Masela Block, Bakrie Pipe Industries, a subsidiary of Bakrie & Brothers that specializes in pipe supply, has expressed interest in supplying pipes for the project in the Arafura Sea. 

President Director of Bakrie Pipe Industries, Wigrantoro Roes Setiyadi, admitted that his firm has been keeping a close eye on the progress of the Masela Block project since 2010. He believes that an onshore pipeline would be more profitable than an offshore system. 

He is also confident of the safety of the onshore option. In the event of an earthquake, although the position and structure of the pipeline might change, they would not crack or leak. For added safety, the pipes will meet American Petroleum Institute (API) standards. 

But Bakrie Pipe must bide its time until the President makes a final decision, as only when the PoD is approved can the block’s operator, Inpex Corporation, put the project out to open tender. 

Bobby Gafur Umar, Deputy Chair of the Indonesian Chamber of Commerce and Industry, believes it make no difference which scheme the government chooses. He just wants the government to provide certainty so this mega-project can go ahead.

He also asked the government to consider using more local materials in the development of the project, to help domestic businesses that have been hard hit by low global oil prices. “Don’t source everything from Japan,” he pleaded.