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

PT Pertamina Gas (Pertagas)

Minggu, 20 Mei 2018 - 23:30 WIB

SOE Asks for Pertagas-PGN Acquisition to be Done at August

Jakarta - The Ministry of State-Owned Enterprises (BUMN) requested the acquisition of PT Pertamina Gas (Pertagas) by PT Perusahaan Gas Negara Tbk (PGN) to be completed no later than August 2018.

Wakil Menteri Energi Dan Sumber Daya Mineral, Arcandra Tahar

Minggu, 20 Mei 2018 - 23:00 WIB

Oil and Gas Regulator, Government Optimistic Positive Trends Upstream Oil and Gas Investment Continues

Jakarta - Since its implementation in 2017, the gross split Production Sharing Contract (PSC) scheme has had a positive impact on the development of oil and gas investment in Indonesia.

Kartu Bogagawe, Senjata Hasanah Tekan Pengangguran (Dok Industry.co.id)

Minggu, 20 Mei 2018 - 22:30 WIB

Bogagawe Card Is a Weapon to Press Hasanah Unemployment

Bogor- West Java is referred to as one of the regions with the highest unemployment rate in Indonesia. With nearly 2 million unemployment, it will affect the poverty rate in Tanah Pasundan.…

Deddy Mizwar-Dedi Muyadi (Foto Dok Industry.co.id)

Minggu, 20 Mei 2018 - 22:00 WIB

Demiz Makes Cianjur-Bogor-Depok-Sukabumi to Become Granary Sound

Bandung - West Java Governor Candidate number four Deddy Mizwar or Demiz made Cianjur, Bogor, Depok, and Sukabumi as the granary for his victory with his partner Dedi Mulyadi in Pilgub West…

Menteri Komunikasi dan Informatika Republik Indonesia (Menkominfo) Rudiantara (Hariyanto/ INDUSTRY.co.id)

Minggu, 20 Mei 2018 - 21:00 WIB

Rudiantara: Transparency of Batang Public Service Has Been Good

Batang- Minister of Communications and Informatics Rudiantara stated that the transparency of public services carried out by the Government of Batang Regency, has been built well so that people…