Chief executive of Pupuk Indonesia Arifin Tasrif said the new JVC is expected to be formed by year-end 2015 and will start operating in 2016.
Pupuk Indonesia and Pertamina are planning to build at least three projects, namely Methanol plant in Bunyu Island in East Kalimantan, fertilizer gas plant in Bintuni Bay, West Papua and in Cepu Block in East Java.
Bintuni area, adjacent to Tangguh LNG plant, is being prepared by the government as a petrochemical hubs. A number of companies such as Ferrostaal, Sojitz, Pupuk Indonesia, and LG Chemical are planning to invest a combined up to $10 billion in the area.
These companies however are yet to realize their plant due to lack of gas supply commitment. They are also waiting for clearance from the government. (*)