Government pushes Pertamina to enter petrochemical project
Friday, March 10 2000 - 02:30 AM WIB
The government is pushing state oil and gas firm Pertamina and fertilizer firm PT Pupuk Sriwijaya (Pusri) to participate in the Transpacific Petrochemical Indotama.
Minister of Trade and Industry Jusuf Kalla said that the participation of the two state companies was needed to ensure Japanese investors that the government was serious to continue the stalled project.
Jusuf said that Japan's Nissho Iwai Corp., and Itochu Corp. had agreed to continue the project, located in Tuban, East Java, as long the government of Indonesia would also participate.
He said that Japan would provide financing for the US$2.3 billion project through the so-called Miyazawa Plan assistance.
The project, which is partly owned by local businessman Hashim Djojohadikusumo, only needed a further $950 million to complete it. (*)