Petrochemical plant construction is expected to hit imports
Director General of the Ministry of Industry, Manufacturing Industry, Panggah Susanto said, with the new petrochemical plant planned to be built in West Papua is expected to reduce the number of Indonesian imports of raw materials.
“These projects will be able to reduce the importation of raw materials which, according to the data in 2012 reached 16 billion U.S. dollars for chemical raw materials,” said Panggah after witnessing the signing of the MoU between Ferrostaal Industrial Projects by PT Chandra Asri Petrochemical Tbk, in Jakarta on Thursday.
He said that with the cooperation will be produced basic products, such as propylene and polypropylene, which will not reduce the importation of raw materials.
“Hopefully, in 2019 to be operational, which we seek is how as soon as possible to get gas allocation,” he said.
Panggah explain step construction of the plant is part of the Ministry of Industry to develop two important sectors in Indonesia related to the chemical industry base and base metals.
“Two of the basic industries we encourage its development, it is important because it aligned with the growth of domestic industry, which will increase the need for raw materials and capital goods,” he said.
He said later that the results of the plant is expected to require an investment of $ 1.8 billion will be earmarked for the domestic market.
“Domestic demand is big enough, then it will be destined for the domestic market,” he said.