Enerco to build TDAE refinery in Batam

A company called PT Enerco RPO Internasional plans to build a treated distillate aromatic extract (TDAE) refinery at the Kabil Industrial Estate in Batam, Riau Islands Province.

Enerco on Monday signed a MoU with PT Kabil Citranusa (the owner of the industrial esate), and Batam Indonesia Free Trade Zone Authority (BP Batam), a state agency tasked with overseeing industrial areas on Batam Island, for the planned project. BP Batam will be in charge of facilitating all the necessary permits for project. The signing of the MoU was among others witnessed by Coordinating Minister for the Economy Darmin Nasution, Riau Islands Governor Nurdin Basirun, and BP Batam Head Hatanto Reksodipoetro.

The Office of the Coordinating Minister for the Economy said in a statement that engineering process for the project has started since last year, and construction process is expected soon in the hope that the TDAE refinery can be completed at the end of 2017.

The refinery will have an annual production capacity of 100,000 tons of TDAE, which is used in the production of high performance tires. Enerco will invest about US$98 million in the project.

Editing by Reiner Simanjuntak