JAKARTA (rambuenergy.com) – The Indonesian government expects new investment in petrochemical industry to reach over US$1.28 billion from this year up to 2018, reflecting growing demand for petrochemical products from downstream producers, including plastic producers.
Muhammad Khayam, director for basic chemical products at the Industry Ministry, said that a number of petrochemical companies have disclosed their investment plan. These companies are PT Chandra Asri Petrochemical, PT Synthetic Rubber Indonesia (SRI), PT Asahimas Chemical, PT BP Petrochemical and PT Polychem Indonesia Tbk.
Khayam was quoted by Kontan daily as saying that Chandra Asri plans to invest US$380 million to add its ethylene production capacity to 860,000 tons per year, from 600,000 tons per annum at present. Chandra Asri also plans to increase its propylene production capacity to 470,000 tons per annum from 320,000 tons at present, mixed C4 to 315,000 tons from 220,000 tons at present and py-gasto 400,000 tons per year, from 280,000 tons per annum at present.
PT Synthetic Rubber Indonesia plans to invest US$350 million to produce styrene butadiene rubber with capacity of 80,000 tons per annum. PT Asahamis plans to invest US$400 million to add PVC production by 350,000 tons per annum, Meanwhile, PT P0lychem plans to add the production capacity of its ethylene glycol by 480,000 tons per annum, but the investment plan is not available yet.
Budi Susanto Sadiman, deputy chairman of the Indonesian Olefin & Plastic Industry Association (Inaplast), said the expansion of petrochemical producers will help meeting the growing needs of downstream petrochemical producers. (*)