Foreign oil and gas companies like Jereh Global support Indonesia's domestic industrial development by partnering with local manufacturers to achieve TKDN (Tingkat Komponen Dalam Negeri) certification, which requires a minimum percentage of local content in equipment and components. This strategy helps companies meet government requirements while building local fabrication capabilities for gas processing equipment such as compressors, scrubbers, and air coolers. Despite global challenges including geopolitical tensions, fluctuating oil prices, and supply chain disruptions, companies adapt by accepting local currency transactions (RMB) to mitigate currency risks and by developing sustainable technologies like battery recycling to align with environmental standards.
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Ikut Aturan TKDN, Investor Migas China Gandeng Industri Komponen Lokal RIAdded:
Mr. Jeffry, as you already explained about the products and also the equipment that Jerry offers to the clients, especially in our government like ESDM and also Pertamina and it's like Pertamina is also a new science stuff and so on.
You probably know that Indonesia aims to strengthen domestic industrial capabilities, but how significant is the role of local manufacturing and local content requirements for companies like Jerry? Yeah.
The government since I think since 2020 is always in encouraged the local content local content. For example, in the TKDN.
If talk about our products gas compressor and also needed to local content. So currently have a few companies have the local contents. So for for the Jerry as the global and foreign companies, we always supported the local companies to establish the local fabricate abilities.
For example, in so until now the Jerry provides more than 30 or 30 gas compressor in Indonesia. So some projects if you needed the local contents, so we can support the our partners as a to we provide the design and engineering. So we supported the local companies to do the local fabricate for for example, scrubber and air coolers. So to make sure our partners can achieve the TKDN certificate TKDN. Yeah.
Okay, so for the scrubbers, you have like a partnership with the local um local businessman or like business common uh local partner local partner. Oh, local partners for achieving that the local content for your clients.
>> Yes. Okay, but do you still uh see the strong momentum of the upstream oil and gas investment in Indonesia this year and why?
Um This year uh actually because war in Middle East even the oil crude price increase a lot. So even the Indonesia domestic market is need a big demand. So currently the production is not enough. Actually especially for the Pertamina. So need to increase the production a lot which are the oil and the gas. So the for if talking about the gas so a lot of oil companies not only Pertamina. So they drill the more gas wells. So the more gas wells so they need to the gas processing plant. So they Jerry have abilities to provide the the whole gas processing plant like the water removal and the CO2 removals. We already have a few projects in Indonesia now.
Okay, so a few projects ongoing in Indonesia about the water sea remover removers and other gas compressors that already been provided to Pertamina and its subsidiaries, right?
>> Yes. Okay, but maybe with the ongoing geopolitical tensions, fluctuating oil prices and also the supply chain supply chain disruptions, what are currently the biggest challenges faced by the upstream support industries such as Jerry? Uh for examples like the raw materials cost increase a lot. So the because of the uncertain environment in the world so the the whole supply chains is totally different this years. So the raw material the cost is increased a lot, especially for the Jerry products is a lot of parts like gas engine, like transmission. We import from the USA. So, like the between the China and the US the import duty also is a big change. So, this is a big big challenge for the Jerry in Indonesia now. Okay, so because of the increasing of the raw material prices and also like the import duty is quite a challenge for Jerry. How about our currency? Does Indonesia's weakened currency also impact the Jerry businesses? Yeah, recently I saw the news between the dollar US dollars and Indonesia Rupiahs is a big changes.
But for the for the Jerry we already do the business in Indonesia many years.
So, currently we try our best to give the most support to our Indonesian customers. So, currently for example, we can accept the payment between the RMB.
So, no need to US dollars. So, we can receive the RMB directly. Oh, great. So, you exchange directly in RMB.
>> Yeah. Okay, but maybe on the other hand with the current global uncertainty is this actually creating a new opportunities for Indonesia on the sector and for Jerry?
Yes, especially in 2006 actually the government and oil companies increase the production a lot.
So, Jerry as the public companies especially focus on the equipment supply. So, have big demand for different kind of equipment especially for the upstream.
It's a big opportunities for the Jerry in Indonesia market. Okay, so it is an opportunity that the government wants to increase its oil and gas production in Indonesia. Okay, so how is Jerry positioning itself to remain competitive and resilient amid transition toward the cleaner energy and the global push for decarbonization?
For example, the Jerry's Jerry's like the like the gas engines. So we always follow the Indonesia standard emission and also accept the oil and gas and the Jerry Jerry also do another business for example like a UV battery recycle.
So we can see in Indonesia have a lot of UV car especially in Jakarta. So maybe after 5 or 6 years, so how to do this is the old battery. So the Jerry is a developing the new technology about the UV battery recycle. So the currently we also have some potential discussion with like the LG, SK, like Samsung. So I think in the futures also in Indonesia, so they have some potential factory and to do the recycle UV battery recycle.
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