Minister of Industry Increases SCG Investment worth USD 600 Million

INDUSTRY.co.id - Bangkok- Minister of Industry (Menperin) Airlangga Hartarto encouraged the realization of investment from Thailand's major manufacturer, Siam Cement Group (SCG), which plans to build a $ 600 million naphtha cracker production facility in Cilegon, Banten.

The plant is expected to meet the needs of raw materials in the country so as to reduce imports.

"We hope that this investment will be realized soon, given the importance for the strengthening of chemical industry in Indonesia," said Menperin after meeting with SCG CEO Roongote Rangsiyopash in a series of working visit in Bangkok, Thailand (17/11/2017).

In the meeting, Minister of Industry was accompanied by the Indonesian Ambassador to Thailand, Toferry Primanda Soetikno, Director General of Metal, Machinery, Transportation and Electronics Industry (ILMATE) I Gusti Putu Suryawirawan and Director General of Chemical, Textile and Multifarious Industries Achmad Sigit Dwiwahjono.

Minister of Industry affirmed, the government is ready to facilitate the acceleration efforts of industry players who want to expand or invest their capital in the country. For example, investors will get permit permits when building their factories in industrial areas.

"If you want to fast, you should invest in industrial areas because all licensing, supply chain, and supporting infrastructure have been prepared there," he said.

The government is committed to continue to create a conducive investment climate, one of them through nurturing a number of economic policy packages.

To support the development of the petrochemical industry in Indonesia, the Ministry of Industry will facilitate companies to obtain fiscal incentives such as tax allowance or tax holiday.

In addition, to be more competitive, the Ministry of Industry has proposed that the petrochemical industry needs to get a decrease in gas prices because as the largest gas user sector in its production process.

Currently, Ministry of Industry focuses the petrochemical industry as one of the priority sectors of its development in the country as it plays an important role as a raw material supplier for many downstream manufactures such as plastic, textile, paint, cosmetics and pharmaceutical industries.

Furthermore, Airlangga gives appreciation to SCG who has invested in Indonesia for more than 20 years. The company has absorbed direct or indirect labor of more than 8000 people.

In Indonesia, SCG has three business lines, namely chemical, cement building materials (CBM), and packaging. CBM market share of 56 percent, chemical 42 percent, and packing two percent. The total value of SCG's investment in Indonesia amounts to USD1.4 billion until the end of 2016 or approximately Rp18.9 trillion.