Minister of Industry: Petrochemical Industry Has Important Role Reduce Trade Balance Deficit

By : Ridwan And Aldi Firhand. A | Sunday, July 08 2018 - 20:45 IWST

Minister of Industry Airlangga Hartarto
Minister of Industry Airlangga Hartarto

INDUSTRY.co.id - Bontang, Amid the deficit of the trade balance, the chemical industry such as ammonium nitrate producers play an important role to substitute imports because its production capacity is able to meet the needs of the domestic market.

This was stated by the Minister of Industry Airlangga Hartarto during a working visit at PT Pupuk Kaltim, Bontang, East Kalimantan, Saturday (7/7/2018).

"We push domestic market more optimally, and continue to be encouraged for export," said Minister of Industry.

Moreover, Ministry of Industry actively spur the development of industrial sectors that have the potential to increase the value of national exports.

"The government has developed medium and long term solutions, namely through import and investment substitution, while the short term is like limiting import of ammonium nitrate, because the domestic industry is sufficient," he explained.

The Minister of Airlangga also revealed that the chemical industry cluster in Bontang still has great potential for the development of downstream products such as dimethyl ether which can be used as LPG replacement fuel source, ammonium nitrate based compound fertilizer, soda ash, and ammonium chloride fertilizer.

In addition, the area of ​​East Kalimantan also has prospects for palm oil plantation development as a source of raw materials for oleochemical based industry clusters as a solution to the significant decrease in palm oil prices in recent years in order to overcome the trade balance deficit.

"The development capability can be realized with the guarantee of natural gas supply for domestic, import quota policy for certain superior products and synergy with the development of technology research," he explained.
 

Ministry of Industry noted, the natural gas needs for industries operating in Bontang reach 452 MMSCFD or about 59 percent of the domestic gas use in East Kalimantan. This needs to be a big concern for long term gas supply guarantees at reasonable prices.

"So it can maintain the continuity of all industrial activities to be more developed with a strong and sustainable structure," said Director General of Chemical, Textile and Aneka Industries (IKTA) Achmad Sigit Dwiwahjono.
 

However, currently around 804 MMSCFD of natural gas from East Kalimantan are still being exported abroad. Considering these conditions and considering the declining supply of natural gas, the Ministry of Industry sees the need for the preferred use of natural gas to domestic industries.
 

"So, it is necessary to ensure that there is no extension of supply for contracts of natural gas sales abroad so that the existing gas supply in East Kalimantan can be prioritized to domestic needs, especially the continuity of the petrochemical industry in Bontang," Sigit said.

News Comment

Today's Industry

Menpora Imam Nahrawi symbolically handed over Rp. 1.5 billion bonus to Defia Rosmaniar (Photo: Doc. Kemenpora)

Senin, 20 Agustus 2018 - 21:41 WIB

Menpora Gives Bonus Rp 1.5 Billion to Defia Rosmaniar

Minister of Youth and Sports (Menpora) Imam Nahrawi symbolically handed over a gold medal of Rp 1.5 billion to Taekwondo athletes Defia Rosmaniar.

Indonesian Wushu Athlete, Lindswell Kwok Won Gold Medal at 2018 Asian Games

Senin, 20 Agustus 2018 - 21:39 WIB

Gold Medal, Lindswell Kwok Enjoys Rp 1.5 Billion Plus Car Bonus

Minister of Youth and Sports (Menpora) Imam Nahrawi claimed to have prepared 3 (three) cars and Rp. 1.5 billion as bonuses for gold medalists at the 2018 Asian Games.

Yusuf Karim Ungsi (Director of One Event), Mr. Kukuh Kumara (General Secretary of GAIKINDO), Mr. Eddy Sumedi (Secretary 1 of GAIKINDO), Mr. Andy Wismarsyah (President Director of Amara Group)

Senin, 20 Agustus 2018 - 21:36 WIB

GIIAS Makassar Auto Show 2018 Ready to Open Tomorrow

Makassar Auto Show 2018 Gaikindo Indonesia auto show (GIIAS) car show is ready to be held and opened to the public starting tomorrow, Tuesday (08/21/2018).

DFSK is present at GIIAS 2018 (Photo: Ridwan / Industry.co.id)

Senin, 20 Agustus 2018 - 21:34 WIB

Expand the Network, DFSK Opens New Dealers in Makassar

Dongfeng Sokon (DFSK) spread its wings to the Sulawesi region, marked by the first introduction of DFSK in the city of Makassar and the creation of new dealers. The reason for the selection…

Ketua Dewan Komisioner OJK, Wimboh Santoso (Foto Ist)

Senin, 20 Agustus 2018 - 21:32 WIB

OJK: The Financial Industry Will Be More Efficient With the Presence of Technology

Chairman of the Board of Commissioners of the Financial Services Authority (OJK) Wimboh Santoso said that currently innovations related to technology not only change the technology industry.…