National EPC (Engineering, Procurement and Construction) companies, such as PT Rekayasa Industri (Rekind), have a very strategic role, especially in supporting the movement of industry in the country. The National EPC Company is likened to a locomotive driving national industrial carriage, because in project work, it always involves hundreds or even thousands of industries such as sub-contractors as well as vendors and other supporting companies.

This was emphasized by Yusairi, Director of Operations and Technology/Development at Rekind, when he was a speaker at a Focus Group Discussion (FGD) entitled Optimizing National Engineering, Procurement & Construction Services in Supporting Industrial Development, Tuesday (23/5/2023).

“By appointing and making regulations according to a larger portion of National EPC companies, it will automatically move industries in the downstream sector,” added Yusairi.

However, he continued, the strategic role of the National EPC company can run optimally to support national development, as long as there is implementation of basic rules, especially regarding the Domestic Component Level (TKDN) which is uniform for all industrial sectors.

“Increasing TKDN will only be successful if it gets support from all parties. Not only the project owner, EPC contractor and domestic industrial practitioners, but all parties must be orchestrated to be able to reach the same point. “Without all of this, it will be difficult for the efforts made to be successful,” said the Bandung Institute of Technology (ITB) ’89 Mechanical Engineering alumnus.

Yusairi admitted that Rekind’s presence as a National EPC company for 42 years has not only played a role in moving the industrial sector, but can also support the government in reducing the Capex (Capital Expenditure) figure by 10% – 30% below the price offered by EPC companies (foreign) competitors, especially in working on national strategic projects.

“When we entered the oil and gas and petrochemical industries, the prices we offered at that time were 10% to 30% cheaper than foreign EPC companies which had been working on oil and gas and petrochemical industry projects in Indonesia,” said the man who more than 30 years of experience in the field of project management, especially in the EPC business.

In each project work, Rekind is also able to record a TKDN content value of 35% – 50%. Although he admitted, there are several projects whose TKDN is above 70% or even 80%, far exceeding the commitment in the contract. “However, the achievement of TKDN is determined by various factors, depending on the type of project, technology and technological maturity as well as domestic industrial capabilities,” Yusairi added convincingly.

Head of the Industrial Services Policy and Standardization Agency (BSKJI) of the Ministry of Industry, Doddy Rahadi, acknowledged that the role of service companies, such as EPC companies, in improving the national economy continues to strengthen. In fact, industrial design and construction services or EPC activities have a major contribution to the industrial development acceleration program.

“As one of the national priority industrial services, industrial design and construction services or EPC activities have a major contribution to the industrial development acceleration program. “EPC in industrial services is the locomotive of the industrial sector,” said Doddy, who was present to deliver the keynote speech at the FGD activity.