Experiencing Stagnation, The Domestic Petrochemical Industry Needs Special Attention

By : Ridwan And Aldi Firhand. A | Friday, January 26 2018 - 21:40 IWST

Direktur Industri Kimia Hulu, Muhammad Khayam (Foto Humas)
Direktur Industri Kimia Hulu, Muhammad Khayam (Foto Humas)

INDUSTRY.co.id - Jakarta - The domestic petrochemical industry has not experienced significant growth in the last two decades. One reason is the availability of raw materials in the country. Whereas petrochemical industry has an important role in the country's economy.

In addition, the petrochemical industry needs special attention. One of them is by increasing the availability of raw materials and energy supply at an affordable price. Then the sustainability of central and local government policies to facilitate the industry.

Director of Basic Chemical Industry, Directorate General of Chemical, Textile and Multifarious Industries (IKTA) of the Ministry of Industry, Muhammad Khayam, said that he has asked the Ministry of Energy and Mineral Resources to secure gas allocation as raw material for petrochemicals.

"We from the Ministry of Industry have asked the Ministry of Energy and Mineral Resources to secure gas allocation of petrochemical industry," said Khayam at Kadin Headquarters, Jakarta (25/1/2018).

In addition, he added, it also has requested tax relief to the Ministry of Finance for the industry can survive.

"With that hope, domestic petrochemical industry can compete with foreign products, we want to compete with the import of raw materials from China to Indonesia," he said.

Furthermore, Khayam revealed, there is currently a new petrochemical project that the government's attention. First, the project belongs to PT. Pupuk Indonesia, Ferrostaal, Sojitz, and LG in Bintuni Bay, West Papua. Second, the industrial project of naphtha cracker by PT. Chandra Asri Petrochemicals in Cilegon, Banten with investment value of US $ 5.44 billion.

Third, the industrial project of naphtha cracker PT. Lotte Chemical Indonesia in Cilegon, Banten. The project's investment is estimated at U $ 3.5 billion and will be completed by 2023.

Fourth, the relocation project of Taiwan CPC naphtha cracker industry by PT. Pertamina in Tuban, East Java. Fifth, Vynil Chloride Monomer Industrial Project by PT. Asahimas Chemical in Cilegon, Banten.

In addition there is also a coal gasification plant project by PT. Bukit Asam, PT Pertamina, PT Pupuk Indonesia, and PT Chandra Asri Petrochemicals in Muara Enim, South Sumatra.

Meanwhile, for the petrochemical industry that utilizes gas in the Masela block is still waiting for the allocation amount. "We are still waiting for the Ministry of Energy and Mineral Resources," Khayam said.

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