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President inaugurates Chandra Asri PE plant in Banten

December 09/2019

MOSCOW (MRC) -- President Joko Widodo (Jokowi) inaugurated national petrochemical company PT Chandra Asri Petrochemical Tbks new plant, worth USD380 million, or Rp5.7 trillion, for production of polyethylene (PE) in Cilegon, Banten Province, on Friday, 6 December, reported AntaraNews.

"PT Chandra Asri is a pioneer in the petrochemical industry in the country. We must support investment in this field to stop imports," he remarked while inaugurating the plant.

With the new plant becoming operational, PT Chandra Asris PE production capacity will increase by 400 thousand tons to reach 736 thousand tons annually.

The president further highlighted the balance of trade in all chemicals suffering a deficit of Rp193 trillion, with exports, standing at Rp124 trillion, and imports, touching Rp317 trillion.

The demand for domestic PE currently reaches 2.3 million tons annually, while the national PE production stands at 280 thousand tons per year. To meet the domestic requirements, the country continues to import 1.52 million tons of PE annually.

"The figure is very large. Hence, we provide tax holiday and tax allowances (to domestic polyethylene investors) since the deficit is still (high) at Rp193 trillion. What is it for? If we can produce it, why do we have to import it," he stated.

The president lauded PT Chandra Asri for its efforts to develop its business that he described as a concrete step to overcoming the country's trade deficit.

"Construction of the new plant is a concrete step. This is what our country really needs," he remarked.

During the inauguration of the new plant, the president was accompanied by Industry Minister Agus Gumiwang Kartasasmita and State-Owned Enterprises Minister Erick Thohir.

As MRC informed before, in June 2018, W. R. Grace & Co., the leading independent supplier of polyolefin catalyst technology and polypropylene (PP) process technology, granted a license which allows CAP to expand its existing UNIPOL PP plant. The world-scale capacity UNIPOL PP facility, located in Ciwandan, Indonesia, will be expanded to 590 KTA of polypropylene.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 1,724,670 tonnes in the first ten months of 2019, up by 7% year on year. Shipments of all PE grades increased.

PT Chandra Asri Petrochemical (CAP) is the largest integrated petrochemical company in Indonesia and operates the countrys only world-scale size Naphtha Cracker. The CAP plant is strategically located in Banten province, providing convenient access to key customers.


mrcplast.com
Author:Margaret Volkova
Tags:PP, PE, propylene, ethylene, petrochemistry, Chandra Asri, W.R. Grace, Indonesia, Russia.
Category:General News
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