The nation’s oil and gas contract tenders, overseen by upstream regulator BPMigas, often stipulate that only Indonesian companies or a joint venture with an Indonesian outfit can bid for a job. Establishing a limited liability local subsidiary is one way to meet this requirement.

International companies that have fabrication facilities on Batam include J Ray McDermott of the US, Japan’s Nippon, SMOE of Singapore and Dubai’s 
DryDocks World (DDW), which has three yards there — Graha, Pertama and Nanidah — plus one in Singapore.

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