Executive Summary

Key insights and market outlook

The Indonesian government has signed an Engineering, Procurement, and Construction (EPC) contract for the Dumai-Sei Mangkei (Dusem) gas transmission pipeline project, a National Strategic Project (PSN). The 541 km pipeline is expected to be completed by 2027 and will connect gas supplies between Java and Sumatra, serving key industrial areas ¹

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Full Analysis

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Deep Dive Analysis

Indonesia Advances Strategic Gas Pipeline Project

Government Signs EPC Contract for Dusem Pipeline

The Indonesian government has officially signed the Engineering, Procurement, and Construction (EPC) contract for the Dumai-Sei Mangkei (Dusem) gas transmission pipeline project, marking a significant milestone in the country's energy infrastructure development ¹

. This National Strategic Project (PSN) is designed to enhance energy connectivity and support industrial growth across key regions.

Project Details and Implementation

The Dusem pipeline project spans approximately 541 kilometers, connecting gas supplies between Java and Sumatra while serving strategic industrial areas in Aceh, North Sumatra, and Riau ¹

². The project is divided into two main segments: Segment 1 (Belawan to Labuhan Batu, ~279.8 km) is being executed by KSO PT Wijaya Karya (Persero) Tbk - PT Nindya Karya, while Segment 2 (Labuhan Batu to Duri, ~262 km) is being handled by KSO PT Remaja Bangun Kencana Kontraktor - PT Brantas Abipraya (Persero) - PT Sumber Bangun Sentosa - PT Singgar Mulia ².

Economic Impact and Infrastructure Significance

The pipeline is designed with a 20-inch diameter and has a transmission capacity of 109.2 MMSCFD. Upon completion by the end of 2027, it is expected to not only strengthen gas connectivity between Java and Sumatra but also stimulate industrial growth along the pipeline route, creating a positive economic multiplier effect ²

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Government Perspective

Director General of Oil and Gas Laode Sulaeman emphasized that the project aims to provide wider access to energy for industrial, commercial, and public sectors. The infrastructure is seen as crucial for driving economic growth and equitable development ¹

. Agung Kuswardono, Director of Oil and Gas Infrastructure Planning and Development, highlighted that the contractor selection process was rigorous, ensuring quality, timeliness, and cost-effectiveness ².

References