The Domestic Petrochemical Industry Still Relying on Imported Raw Materials

By : Ridwan And Aldi Firhand. A | Thursday, January 25 2018 - 20:18 IWST

vice chairman of Kadin for Industry, Johnny Darmawan (Photo: Ridwan / Industry.co.id)
vice chairman of Kadin for Industry, Johnny Darmawan (Photo: Ridwan / Industry.co.id)

INDUSTRY.co.id - Jakarta - Vice Chairman of Industry of Kadin Indonesia, Johnny Darmawan said, 50% of raw material needs of petrochemical industry in the country still rely on imports.

"Nearly 50% of industrial raw materials to meet the demand of the petrochemical sector are still imported," said Johnny Darmawan, Vice Chairman of Kadin Indonesia Industry in Focus Group Discussion (FGD) Building Sustainable Industry Sector Review Upstream Oil and Gas Sector and Petrochemicals held Kadin Indonesia in Tower of Kadin, Jakarta, Thursday (25/1/2017).

He added that the current domestic petrochemical raw material demand reached 5.6 million tons per year. "From that amount, the fulfillment of new demand reaches approximately 2.45 million tons per year," he explained.

Furthermore, he revealed, the market of petrochemical products, from upstream, between, and downstream is very large. However, the domestic market is dominated by imported products. "With such a structure, practically the national petrochemical industry is difficult to compete," said Johnny.

According to him, this condition becomes a challenge for the government and business actors. If the upstream oil and gas and petrochemical industries are not immediately addressed then the national industry can not yet lead to sustainable industry status.

Meanwhile, Chairman of Standing Committee of Kadin Indonesia Chemical & Petrochemical Industry, Rauf Purnama said the petrochemical industry can actually contribute greatly to the country to reduce the dependence of raw material imports, increase foreign exchange of exportable products, and open up extensive employment .

"Furthermore, the petrochemical industry also has a strategic position in the development of the industry as a whole in the production chain across industry sectors," Rauf said.

Therefore, Kadin Indonesia assesses the upstream sector of the industry needs to get serious attention in the structuring of national industrial structure.

"In addition to supplying various types of raw materials for other industries, downstream petrochemical industry also supplies the daily needs of the community," he said.

News Comment

Today's Industry

President Joko Widodo

Jumat, 24 September 2021 - 20:15 WIB

Indonesia Has Enormous Potential to Become Global Maritime Axis, President Jokowi Says

Indonesia, the world’s largest archipelagic country with 17,000 islands, a coastline of more than 108,000 kilometers and the world’s largest marine biodiversity, should become the world’s…

Minister of Finance Sri Mulyani Indrawati/ Photo by: PR of Cabinet Secretariat.

Jumat, 24 September 2021 - 18:48 WIB

State Budget Performance Improves; Economic Recovery Makes Headway: Sri Mulyani

The realization of this year’s State Budget until August 2021 has shown good performance, marked by maintained growth in expenditure realization of Rp1,560.8 trillion or a growth of 1.5 percent,…

President Jokowi accompanied by Cabinet Secretary Pramono Anung to conduct a working visit to Cilacap regency, Central Java province (23/09/2021). (Photo by: Presidential Secretariat’s Press, Media, and Information Bureau/Laily Rachev)

Jumat, 24 September 2021 - 17:10 WIB

President Jokowi Kicks Off C. Java Working Visit

President Joko “Jokowi” Widodo on Thursday (23/09) accompanied by Cabinet Secretary Pramono Anung left for Cilacap regency, Central Java province for a working visit.

President Joko Widodo delivers his remarks through video conference at the 76th UNGA General Debate Session on Thursday (09/23) Western Indonesia Time. Photo by: PR of Ministry of Foreign Affairs.

Jumat, 24 September 2021 - 16:37 WIB

President Jokowi: Inclusiveness is Top Priority for Indonesia’s G20 Presidency

Indonesia will make the best endeavor to ensure that the G20 can benefit all countries, President Joko “Jokowi” Widodo has stated.

Indonesian Ambassador to the United Nations Darmansjah Djumala receives award from the IAEA and the FAO in Vienna, Austria, Monday (20/9). (Photo: PR of BRIN)

Rabu, 22 September 2021 - 19:30 WIB

Indonesia Wins Award on Food Plant Breeding from FAO, IAEA

Indonesia has received an outstanding achievement award from the Food and Agriculture Organization (FAO) and the International Atomic Energy Agency or IAEA.