Minister of Industry: Petrochemical Industry Improving Domestic Investment

By : Ridwan And Aldi Firhand. A | Sunday, May 20 2018 - 19:45 IWST

Minister of Industry, Airlangga Hartarto when inaugurated the oleochemical plant Sinar Mas Cepsa
Minister of Industry, Airlangga Hartarto when inaugurated the oleochemical plant Sinar Mas Cepsa

INDUSTRY.co.id - Jakarta, Minister of Industry Airlangga Hartarto said at least there are three companies that have expressed interest to invest in the development of petrochemical industry sector in Indonesia, namely PT Chandra Asri Petrochemical Tbk., Lotte Chemical Titan, and large Thai manufacturer, Siam Cement Group (SCG).

"They will produce the needs of naphtha cracker based chemical raw materials in the country so that we will no longer need to import," Airlangga said in Jakarta (20/5/2018).

According to him, Indonesia has the potential to become the center of growth of petrochemical industry and will be more competitive in ASEAN level with the increasing investment and expansion of several domestic producers.

"This shows that Indonesia is still an investment destination country as government efforts continue to create a conducive business climate," he said.

SCG plans to build a $ 5.5 billion naphtha cracker production facility in Cilegon, Banten. The soon-to-be-built petrochemical plant will have a production capacity of 1.2 million tons per year.

"This investment creates employment and increases the added value, the production results also to meet the needs of domestic and export markets," said Airlangga.

Ministry of Industry noted, naphtha cracker from the national industrial production currently only reach 900 thousand tons per year, while domestic demand of 1.6 million tons.

The petrochemical industry is designated as one of the strategic upstream sectors as it provides raw materials for almost all downstream sectors, such as the plastics industry, textiles, paints, cosmetics and pharmaceuticals.

"Therefore, sustainability in the development of petrochemical industry is very important for economic activity," he said.

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

News Comment

Today's Industry

President Jokowi inspects vaccination for students at State Vocational High School SMKN 1 Beringin, Deli Serdang regency, Thursday (16/9). (Photo by: Presidential Secretariat/Laily Rachev)

Senin, 20 September 2021 - 13:05 WIB

President Jokowi Lauds Students’ Enthusiasm for In-Person Learning

President Joko “Jokowi” Widodo inspected COVID-19 vaccination for students at Vocational High School SMKN 1 Beringin, Deli Serdang regency, North Sumatra, Thursday (16/9).

Vice President Ma’ruf Amin (Photo: BPMI)

Senin, 20 September 2021 - 12:15 WIB

VP Calls for Public Collaboration to Combat Drugs Abuse

Vice President Ma’ruf Amin has urged the nation to join hands and participate in a joint effort to eradicate drug abuse.

President Jokowi on his inspection of door-to-door vaccination at Panampaan village, Harjamukti district, Cirebon city, Tuesday (31/08). (Photo by: BPMI/Muchlis Jr)

Senin, 20 September 2021 - 11:08 WIB

President Jokowi in Aceh to Inspect Door-to-Door COVID-19 Vaccination

President Joko “Jokowi” Widodo started his working visit in the provinces of Aceh and North Sumatra by inspecting the door-to-door COVID-19 mass-vaccination in Aceh Besar regency.

Hypertherm, a U.S. based manufacturer of industrial cutting systems and software.

Rabu, 15 September 2021 - 20:15 WIB

Hypertherm Introduces Three New Plasma Systems With Built-in Intelligence and a Revolutionary Single-Piece Cartridge Consumable

Hypertherm, a U.S. based manufacturer of industrial cutting systems and software, today announced three new air plasma systems called Powermax SYNC™. Featuring built-in intelligence and a…

The Pacific Asia Travel Association (PATA)

Rabu, 15 September 2021 - 19:44 WIB

PATA launches Virtual PATA Wellness and Luxury Travel Conference and Mart 2021 in October

The Pacific Asia Travel Association (PATA) is pleased to announce the launch of the Virtual PATA Wellness and Luxury Travel Conference and Mart 2021, taking place from October 20-22.