The Jakarta Post
After a three year construction period, Italian owned Karimun Yard is officially operating and has become the largest manufacturing center for oil and gas in the Asia Pacific. Saipem Karimun Yard is built on a 130-hectare area in the Karimun regency and is targeting an annual production of 50,000 tons with an investment of Rp 3 trillion.
The inauguration of PT Saipem Karimun Yard was officiated by Deputy Minister of Energy and Mineral Resources, Widjajono Partowidagdo. Also present were a number of important officials, such as Deputy Chairman of BP Migas R. Hadiono, Italian Ambassador for Indonesia Federico Failla, Governor of Riau Islands Muhammad Sani and Regent of Karimun regency Nurdin Basirun, as well as the former governor of Riau Islands Ismeth Abdullah.
Meanwhile, from the Saipem side were Chief Executive Officer (CEO) Pietro Franco Tali and Indonesia Country Manager Business Unit Engineering and Construction, Michel Laine. The event was attended by a number of business partners and representatives of Karimun regency community.
Pietro Franco Tali in his opening speech said that when Saipem made the decision to construct the yard on Karimun island the company was aware of its important role here.
It was also pleasing to know that the Indonesian government and most of the Indonesian public also considered the decision had great significance.
“Our initial workload for Karimun, including the approximately 17,000 ton topside, the 5,000 ton structures, along with our own internal activities employed a maximum of almost 2,500 people. Although this is still far from our maximum capacity, it is a very good start,” said Peitro Tali.
According to Peitro it is an integral part of Saipem’s culture to absorb local human resources, so that is why out of the 40,000 employees of Saipem worldwide more than two thirds are from the developing countries.
“In this case investing in local content is not something that we think twice about,” said Peitro.
Pietro also added that the selection of Karimun was also a natural decision in view of the fact that Indonesia is a large oil producer with a promising future, especially its offshore oil and gas plus deepwater.
“I feel fortunate that Karimun can participate in future challenges of oil and gas and become an important role model for Saipem’s industry throughout the world,” said Peitro.
Meanwhile, Indonesia Country Manager Business Unit Engineering and Construction, Michel Laine, said that the location in Karimun was decided four years ago after Saipem’s search for the best location everywhere in Southeast Asia and the Middle East. It has been Saipem’s ambition to develop a yard that can support Saipem’s business regionally and globally.
“After intensive research and studies combining all parameters, technically, economically, commercially as well as socially, we proposed Karimun to the CEO of Saipem, Pietro Franco Tali, who said ’Yes, go ahead’,” said Michel Laine.
The groundbreaking ceremony of PT Saipem Karimun Yard located at Pangke Village, Tanjung Balai Karimun, Karimun regency, Riau Islands Province, was held on April 3, 2008. In the three-and-a-half years since then more than 100 buildings, a 62,000 square meter closed fabrication area and a 400,000 square meter open fabrication area, warehousing, blasting and painting area as well as housing complex for the experts working on the site have been built.
PT Saipem has built Karimun Yard as a fabrication site for onshore and offshore structures, such as
topsides, jackets, piles and integrated decks, onshore modules with a top capacity target of 50,000 tons per year.
Deputy Minister for Energy and Mineral Resources Widjajono said that Indonesia’s progress lay in the success of its regencies and cities to create a favorable climate for investment and development. If all regencies or cities succeed then Indonesia will automatically progress.
“We hope that such a huge investment as Saipem’s in Karimun will have a positive impact on the area, because the company absorbs a large number of local human resources,” said Widjajono.
Meanwhile, Karimun Regent Nurdin Basirun said that Saipem’s investment in Karimun had promoted the area to other investors who were also attracted to invest in Karimun.
“Saipem is attracted to Karimun’s Free Trade Zone (FTZ) facility. About 60 percent of the manpower are local people and only 40 percent from other areas. Saipem’s investment here is a promotion for Karimun to attract other investors who are now certain about the positive climate of investment here,” said Nurdin Basirun who explained that PT Saipem has made available at least 5,000 job opportunities.
Former governor of Riau Islands, Ismeth Abdullah, who was also present during the event, received a special applause from PT Saipem and the administration of Riau Islands Province for his vital role in convincing PT Saipem to invest in Karimun.
Ismeth Abdullah said that it was a challenge to get the trust of a major foreign company like PT Saipem, as Karimun had to compete with an integrated shipyard in Malaysia.
“We had tight competition with Malaysia at the time. However, with various breakthroughs Saipem finally realized Indonesia’s sincerity and selected Karimun. The plus points of Karimun is its FTZ facility, strategic location and its deep water. The certificate of the 130-hectare plot was completed within one week and was handed over by the Head of National Land Agency (BPN) in Jakarta. “Nothing like that has ever happened before,” said Ismeth on the sidelines of the event.