Indonesia Progresses on Dumai-Sei Mangkei Gas Pipeline Construction
The Ministry of Energy and Mineral Resources (ESDM) has reported that the construction progress of the Dumai-Sei Mangkei (Dusem) gas transmission pipeline reached 37.494% as of the end of July 2026. This figure is considered to have exceeded the initial target set by the government to accelerate national energy self-sufficiency.
Inspector General of the Ministry of ESDM, Yudhiawan, stressed the importance of adhering to operational standards and budget transparency to ensure this National Strategic Project (PSN) delivers economic benefits to the community. ‘The energy self-sufficiency programme is a mandate from the President to support the people’s economy. The key for this national project is that it must not stall, it must be on time, on budget, and free from irregularities or potential corruption,’ he stated in an official release.
The gas pipeline, which spans a total of 535.4 kilometres, is divided into two segments being worked on in parallel to meet the completion target by the end of 2027 or early 2028. Segment 1 connects Belawan to the Labuhan Batu Regulating and Metering Station, while Segment 2 runs from the Labuhan Batu Station to the Duri Facility.
The construction of Segment 1, stretching approximately 268.7 km, has been entrusted to a consortium of Wijaya Karya and Nindya Karya, with construction management supervision by a consortium of Surveyor Indonesia and PT Tata Guna Patria, alongside involvement from ITB academics to mitigate technical risks. ‘We from the Inspectorate General will continue to provide assistance and assurance so that the project runs cleanly without deviations,’ Yudhiawan added.
Meanwhile, Director of Oil and Gas Infrastructure Planning and Development, Agung Kuswardono, confirmed that acceleration efforts are ongoing by resolving cross-agency licensing obstacles in the field. The government recently finalised agreements with several toll road operators to allow the contractor teams to immediately mobilise equipment and commence full-scale work. ‘Regarding land and cross-agency licensing issues, we are finalising the Cooperation Agreement today so that the team can start working fully on site tomorrow,’ Agung explained. The project is being funded by the state budget with a construction period of 22 months and a Domestic Component Level (TKDN) of 60.9%.