President Jokowi: New Polyethylene Plant Expected to Cut Petrochemical Import
Date 6 Desember 2019
The newly-inaugurated polyethylene plant owned by publicly-listed petrochemical company PT Chandra Asri in the coastal town of Cilegon in Banten province is expected to cut the country’s petrochemical products import, President Joko “Jokowi” Widodo has said.
For the record, the new plant is expected to add production capacity of the company’s existing factory by 400,000 tons per year, making the total capacity of the factory reach 736,000 tons per year.
In addition, the company is also expected to develop the next petrochemical complex with an investment of around Rp60-80 trillion to be completed in 2024.
President Jokowi applauds the factory’s business plan, saying that it will significantly reduce the country’s import on petrochemical.”I estimate that 3 or 4 years from now we will no longer import petrochemical products. Perhaps we can even export them,” President Jokowi said during the inauguration ceremony of the new plant on Friday (6/12).
According to the President, Indonesia’s chemical exports is currently at Rp124 trillion, while chemical imports reache Rp317 trillion, making the deficit reach Rp193 trillion.
In the meantime, domestic polyethylene demands reach 2.3 million tons per year, while national production capacity stands at only 780,000 tons, meaning that Indonesia still imports 1.52 million tons of polyethylene every year.
Therefore, the President expressed hope that the next investment from PT Chandra Asri can resolve this issue, adding that every investment will provide employment, which will eventually contribute to local economics as well as national economy. (FID/OJI/ES)
Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas