Cooperating With Chinese Investors, Genting Oil Ready to Spend US $ 2 Billion Fund to Build Petrochemical Plant in Bintuni

By : Ridwan And Aldi Firhand. A | Thursday, February 15 2018 - 16:52 IWST

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).
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).

INDUSTRY.co.id - Jakarta, Deputy General Manager of Genting Oil, Wandy Wanto disclosed his meeting with Airlangga Hartarto Minister of Industry to discuss the company's intention to invest in the petrochemical industry sector in Indonesia.

"For investments in the petrochemical sector in Bintuni we hold investors from China," said Wandy in Jakarta (14/2/2018).

According to Wandy, the Chinese investor expressed his interest to invest US $ 1.5-2 billion to produce methanol.

"If realized, the petrochemical plant needs to go through some preparations until it can operate in 2022," said Wandy.

Meanwhile, the Director General of Textile and Multifarious Chemical Industry (IKTA) of the Ministry of Industry, Achmad Sigit Dwiwahjono, who helped accompany Airlangga said that his party supports Genting Oil's investment plan in Bintuni, West Papua.

"For me whoever the most important investor there is petrochemical industry there," he explained.

Furthermore, Sigit said, the current import of petrochemical products reached Rp220 trillion, of which 70 percent are based on polypropylene and polyethylene.

So, if the Chinese petrochemical investment is really realized, then the resulting product can substitute the import of methanol of 1.8 million tons per year or equivalent to Rp100 trillion.

Sigit believes that Indonesia has the potential to become the center of the 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.

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.

News Comment

Today's Industry

Dr Paul Gardner-Stephen, Senior Lecturer, College of Science and Engineering, Flinders University (Photo by ICT Days)

Kamis, 24 September 2020 - 15:15 WIB

NBN Co to Spend $3bn Upgrading Half of FTTN Network to Full Fibre

In particular, the original Fibre-To-The-Premises (FTTP) plan had several key advantages that this announcement is not able to solve.

Rena Chua, Bug Bounty Advisor at HackerOne (Photo by Linkedin)

Kamis, 24 September 2020 - 14:15 WIB

How COVID-19 Is Impacting Security

With this accelerated pace of digital transformation, CISOs had to quickly facilitate new needs — while ensuring the security of existing systems and newly-acquired collaboration tools.

Ilustration Asia-Pacific’s First and Largest Collaborative Robots Virtual Expo (Photo by Universal Robots)

Selasa, 22 September 2020 - 17:00 WIB

Universal Robots Hosts First Virtual Collaborative Robots Exhibition & Conference in Asia-Pacific

Gain actionable insights on flexible and cost-effective automation solutions addressing post-pandemic ROI and safety challenges for small & medium businesses.

Published BSIMM11, The Latest Version of The BSIMM (Photo by EEJournal)

Senin, 21 September 2020 - 18:30 WIB

Synopsys Publishes BSIMM11 Study Highlighting Fundamental Shifts in Software Security

BSIMM11 reflects the software security practices observed across 130 firms from multiple industry verticals including financial services, FinTech, independent software vendors, cloud, health…

New Cloud-Based Technology That Delivers Secure Remote Access (Photo by News Break)

Senin, 21 September 2020 - 17:15 WIB

Check Point Software Technologies Redefines Secure Remote Access for Enterprises

This technology will integrate with Check Point´s Infinity architecture, and become the easiest and most secure solution for enterprises need to enable employees´ secure remote access to any…