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Joint Ventures | Distribution
Bhumi Phala Perkasa
Mr Eka Santoso

Mr Eka Santoso,President Director

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A presentation of Bhumi Phala Perkasa and the main strategies being followed by the company to date.

Mr Eka Santoso

The company was established in 1993 in Kalimantan as I had extensive experience in working with foreign companies in the engineering and construction field. I began the company with foreign partners so we have a lot of international influence in the company. I adopted a lot of what I had experienced in working for foreign companies in terms of professionalism and best practice; I believe this is what sets us apart from smaller players in the sector that have lower standards.

In 2005-6 we purchased the land to set up our own manufacturing workshop and secured financing for this initiative. From 2007 business began to pick up significantly with a boom in demand for oil and gas services in Indonesia. With our principals, we also made agreements to manufacture more parts locally in Indonesia as opposed to importing based on the guarantee that we could provide the same skill and high quality standards as their manufacturing. This involved a lot of time and investment into developing our skilled manpower.

The government has introduced regulations regarding minimum requirements of local content in equipment and this also applies to equipment for the energy sector. Therefore our plan for the future is to work with our foreign principals to develop more locally produced content. This will be highly beneficial to international manufacturers as many companies are facing setbacks when bidding for tenders in Indonesia as their equipment does not contain sufficient local content.

For the future, we will remain concentrated on the oil and gas sector as well as mining and really focus on producing high quality, locally manufactured parts for the necessary equipment. Greater added value in the manufacturing process is our vision for the future as we aim to produce up to 60% locally made content for international brands.

gbg

Indonesia’s oil and gas sector has been seen as in a state of decline due to falling production figures. What is your outlook on the future development of the industry?

Mr Eka Santoso

There are still plenty of developments taking place in Indonesia’s oil and gas sector; even the older wells that have already peaked in terms of production still present a lot of opportunities. Deep sea reserves located more than 2,000 metres below sea level are a further area of potential for the country as well as LNG where Indonesia is the second largest producer after Qatar. In other areas of the energy sector; Kalimantan has extensive deposits of Coal Bed Methane that are yet to be explored which is another very interesting area. Therefore I am still very confident in the future of the sector as there is plenty of activity going on as reflected by the demand for our maintenance services for oil and gas companies.

gbg

With the growing interested in Indonesia as a foreign investment destination, how is the company positioned to work with international partners wishing to enter the market with a local partner?

Mr Eka Santoso

We are always open to working with new partners and investors as we have an ambitious growth plan for the company. Specifically, we would be looking for partners that have expertise in manufacturing and engineering for technology transfer purposes.

In the field of downstream processing of petrochemicals, Indonesia lacks the capacity and therefore has to import the final product which I think is another area that could be explored with a partner that has expertise in this area. Indonesia is a country rich in natural resources which is very rare so I believe downstream processes are a necessity as well as an opportunity for the future.

We welcome new partners to Indonesia as there are so many resources to explore. We are well positioned to work with international partners as we are unique in being a local company that has international standards as well as the highest level of professionalism in our operations.

Global Business Guide Indonesia - 2012

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