TEMPO.CO, Jakarta - Anxiety has spread among domestic steel pipe manufacturers over the tender for pipe procurement for the development of the Gehem and Geng North offshore gas fields in East Kalimantan, conducted by Italian energy company Eni Indonesia Ltd. They suspect that the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) disregarded local content requirements (TKDN) in last year's bidding process.
The concerns were reflected in a letter of objection sent by Artas Energi Petrogas to Eni on April 8, 2025, with copies forwarded to Energy and Mineral Resources Minister Bahlil Lahadalia and SKK Migas Chief Djoko Siswanto. Artas protested a tender clause that imposed a non-domestic product appreciation (APDN) requirement.
In the letter, a copy of which was obtained by Tempo, the company argued that the requirement restricted the competitiveness of local products. "Without the APDN requirement, foreign companies or pipe manufacturers with low domestic content levels can freely participate in the tender," one of the objections stated. Artas claimed that its pipe products carry a TKDN value of more than 40 percent, the threshold that should receive priority under government regulations.
The Gehem and Geng North gas wells are part of the Ganal Block oil and gas working area. In mid-April 2026, the Ministry of Energy and Mineral Resources announced the discovery of a massive new gas reserve in the Geliga-1 exploration well within the block, operated by Eni.
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