Jakarta (IOGNews) - Japan’s Toyo Engineering has picked up a 47% stake in Indonesia’s Inti Karya Persada Teknik, (IKPT) amid an increase in tendering activity for infrastructure and oil and gas projects in the south-east Asian country.


In a press statement released on Tuesday, Toyo said IKPT was valued at 5.5 billion rupiah (USD 600,000) but did not unveil the acquisition cost for its 47% interest in the Indonesian outfit.


Toyo is eyeing a share of accelerated infrastructure development in Indonesia. The economy of the world’s fourth-most populated country was growing at over 6% in 2010 and 2011 and remained relatively unscathed by the recent global slowdown, the Japanese company said.


Tendering activity in Indonesia’s upstream oil and gas sector is ramping up, with mega-projects like Chevron’s Gendalo-Gehem, Inpex’s Abadi floating liquefied natural gas development and Mitsubishi’s majority-owned Donggi Senoro liquefied natural gas plant in the pipeline.


Indonesian local content requirements however, dictate that foreign contractors have to team up with Indonesian-owned companies in order to qualify for these tenders.


Toyo will be able to join hands with IKPT to participate in the Gendalo-Gehem, Abadi and Donggi Senoro tenders. The Japanese engineering company is expected to lend its LNG expertise to IKPT’s bids for these projects. However, how the new alliance will affect IKPT’s standing partnership with Petrofac of the UK remains unclear.


The Japanese player has also pledged to rope in IKPT for projects out of Indonesia.(Upstream)