Investment Intentions in the Petrochemical Sector, Genting Oil Visit the Minister of Industry

INDUSTRY.co.id - Jakarta, Minister of Industry Airlangga Hartarto received the visit of General Manager of Genting Oil Pte Ltd, Wandy Wanto at the Office of the Ministry of Industry, Jakarta, Wednesday (14/2/2018).

In the meeting, Minister of Industry Airlangga was accompanied by Director General of Chemical, Textile and Aneka Industries (IKTA) of Ministry of Industry, Achmad Sigit Dwiwahjono.

"Genting Oil's visit this time is intended to discuss the company's intention to invest in the petrochemical industry sector in Indonesia," said Airlangga.

Airlangga hopes that the investment will soon be realized in the petrochemical industry sector in Indonesia.

As is known, the Ministry of Industry continues to encourage the growth of the petrochemical industry in Indonesia because it plays an important role in meeting production needs in other manufacturing sectors.

With its capital-intensive, technology-intensive, and energy-conscious nature, the development of the petrochemical industry needs to get special attention from the government.

Meanwhile, Sigit believes that Indonesia has the potential to become the center of growth of the petrochemical industry, and can even be competitive in ASEAN and Asia. This is because Indonesia has potential oil and gas reserves of up to 7.5 billion barrels and 150 trillion cubic feet and 30 billion tons of coal reserves.

"This resource has not been used optimally and has only been exported," he said.

Ministry of Industry noted, during the year 2015-2017, the growth of petrochemical industry based on oil and gas is still influenced by the increase of gas price. The reason, gas raw materials to form 70 percent of the production cost structure in the sector.

Therefore, in an effort to accelerate the realization of investment in the petrochemical industry, the Ministry of Industry has proposed that this sector needs to get a decrease in gas prices.

"Ascertained, with competitive gas prices, the competitiveness of the national petrochemical industry is increasing," Sigit said.