Chandra Asri Prepares Development of the Second Petrochemical Complex

By : Abraham Sihombing And Aldi Firhand. A | Tuesday, January 09 2018 - 21:13 IWST

PT Chandra Asri Petrochemical Tbk (TPIA)
PT Chandra Asri Petrochemical Tbk (TPIA)

INDUSTRY.co.id - Jakarta - The management of PT Chandra Asri Petrochemical Tbk (TPIA) is preparing the construction of a second petrochemical complex this year. Currently, the activity is just entering the preparatory stage of the feasibility study (pre-feasibility study).

Preparation is expected to increase the amount of capital expenditure (capital expenditure / capex) required by the company in 2018.

"The company's management is allocating US $ 300 million to finance its capital expenditure this year," said Harry Tamin, Head of Investor Relations at TPIA, in Jakarta recently.

Previously, the management of the largest petrochemical producer in Indonesia is expected to allocate US $ 250 million of capital expenditure. But with the plan to build the second petrochemical complex, the company's capital expenditure will be 25% higher than its original estimate.

According to Harry, the majority of TPIA's capital expenditure funds this year will be used to finance various ongoing expansion projects, namely the expansion of polyethylene plant construction and the expansion of polypropylene plant predicted to be completed by 2020.

"Meanwhile, the development of a synthetic rubber plant in collaboration with Michelin and the debottlenecking of the butadiene plant is predicted to be operational this year," said Harry.

Harry also revealed, the performance of TPIA in 2018 is estimated to be flat. That is due to the possibility of a decrease in the selling price of petrochemical products this year. (Abrahan Sihombing)

News Comment

Today's Industry

Wellington College Independent School Jakarta (WCIJ)

Senin, 29 April 2024 - 05:02 WIB

One of the UK’s Most Established Schools Chooses Jakarta for Their Latest Opening

Wellington College Independent School Jakarta (WCIJ) is thrilled to announce its grand opening in September 2024! As the first private UK school to open in Indonesia, WCIJ, a pioneering co-educational…

Presiden Jokowi

Selasa, 23 April 2024 - 10:29 WIB

President Jokowi Reaffirms Commitment to Farmers’ Welfare

President Joko “Jokowi” Widodo on Monday (04/22) inspected corn harvest in Boalemo regency, Gorontalo province. “Our corn import has decreased significantly from 3.5 million tonnes to…

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…