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

Salat Island is become a conservation area for Orangutan by the management of PT Sawit Sumbermas Sarana Tbk (SSMS). (Foto: Public Relations of PT Sawit Sumbermas Sarana Tbk)

Sabtu, 24 Juli 2021 - 12:15 WIB

Sawit Sumbermas Sarana Preparing RSPO Virtual Tour for August 2021

PT Sawit Sumbermas Sarana Tbk (SSMS), a public firm of palm oil firm listed in the Indonesia Stock Exchange (IDX), plans to hold a RSPO Virtual Tour on August 2021. It is a measure to support…

Minister of Religious Affairs Yaqut Cholil Qoumas delivers a statement in a press conference on Thursday (22/07). Photo by: YouTube channel of Presidential Secretariat.

Jumat, 23 Juli 2021 - 19:29 WIB

Indonesia Receives 8 Million More Doses of Sinovac Vaccine

Indonesia received eight million more doses of Sinovac COVID-19 vaccine in the form of bulk vaccine on Thursday (22/07).

The Opening of Technical Education and Training for Interpreting batch three held online, Thursday (22/07). (Source: Screenshot from Zoom Application)

Jumat, 23 Juli 2021 - 17:22 WIB

Cabinet Secretariat Holds Online Interpreting Training

Cabinet Secretariat, Thursday (22/07), opened the third batch of Technical Education and Training for Interpreting held virtually.

Minister of Manpower Ida Fauziyah. (Photo by: BPMI Documentation)

Jumat, 23 Juli 2021 - 16:01 WIB

Gov’t to Roll Out Wage Subsidy for Workers, Laborers This Year

In a bid to prevent layoffs due to the impact of COVID-19 pandemic, the Government has decided to continue disbursing wage subsidy for workers/laborers this year.

Ministerial Instruction Number 22 of 2021 on Level 4 Community Activity Restrictions in the islands of Java and Bali

Jumat, 23 Juli 2021 - 15:12 WIB

Home Minister Issues Instruction on Level 4 Community Activity Restrictions in Java, Bali

Minister of Home Affairs Tito Karnavian on 20 July 2021 signed Ministerial Instruction Number 22 of 2021 on Level 4 Community Activity Restrictions in the islands of Java and Bali.