Since the opening of the 2023 Domestic Product Shopping ‘Business Matching’ activity, the PT Rekayasa Industri (Rekind) booth has become the center of attention of many visitors, both the public and private and state officials, including the Minister of Industry Agus Gumiwang Kartasasmita.

At the activity which was held from 15-17 March 2023 at Istora Senayan, Gelora Bung Karno Complex, Jakarta, Rekind, who was present at booth 311, presented various information about the best works it had ever done. Such as the construction of fertilizer factories, power plants, oil and gas refineries, petrochemical factories and so on. On the booth, there was also a miniature display of Rekind’s design and engineering work on the Blue Sky Balongan Project.

“The Blue Sky Balongan project which was inaugurated on August 28 2005 is a mega project, as well as a historical milestone because it is the first oil refinery in Indonesia built by Indonesian sons and daughters through Rekind as the main contractor. Through this project, Rekind is also able to fulfill the government’s hope of absorbing 42.54 percent local content,” said Yusairi, Director of Operations and Technology/Development at Rekind after accompanying the Minister of Industry, Agus Gumiwang Kartasasmita.

According to the Bandung Institute of Technology (ITB) ’89 Mechanical Engineering Alumnus, this local content achievement shows Rekind’s commitment to always prioritizing quality domestic products to support every project activity it undertakes. Even if there are components that have to be imported, that is the last option, because for this company which was founded on August 12 1981, Indonesia has many quality products to support activities in the EPC industry. On the other hand, Rekind is also committed to recruiting or employing local skilled workers in project work. Their competence is enhanced through knowledge transfer by Rekind’s best engineers.

Yusairi added, in the last four years, the realization of the Domestic Component Level (TKDN) value in a number of projects carried out by Rekind, the average realization reached 53.47%. All TKDN values ​​are verified directly by independent verification institutions (PT Sucofindo and PT Surveyor Indonesia).

Rekind’s efforts to increase the value of TKDN have started from making project proposals, initial engineering design (Front End Engineering Design/FEED) to implementing project development or construction. Even in the procurement of goods and services, Rekind as a contractor often sets a limit on the TKDN value that must be met by each vendor and/or sub-contractor in their respective work contracts. “If the TKDN value is not met according to the contract, we will not hesitate to give strict sanctions to them (vendors and subcontractors),” explained the 2004 graduate of the Master’s Degree in Gas Engineering & Management, University of Salford, England.

However, Yusairi continued, it is necessary to understand that the value of TKDN is very dependent on the estimated cost of goods and services. Fluctuations in the cost estimate will also result in fluctuations in the TKDN value. On the other hand, the level of TKDN utilization for each project also really depends on how willing the project owner is. This condition usually occurs because the price of materials at local companies can be more expensive than imports.