Govt may restrict naphtha and condensate exports

The government may restrict naphtha and condensate exports to ensure sufficient supply for the country?s chemical industry, a senior official at the ministry of industry has said.

Tony Tanduk, the director for basic chemical industry said in Jakarta last week that the plan to restrict naphtha and condensate exports would soon be discussed with the Energy and Mineral Resources Ministry and Trade Ministry and related industries.

He said that the naphtha and condensate, mostly used by the chemical industry, should not be exported because the domestic production was still unable to meet the industry?s demand

?The export restriction is also needed to improve the competitive edge of the local chemical industry,? he added.

Of the total naphtha demand which reaches between 2.2 million and 2.3 million tons a year, between 1.7 million and 1.8 million tons are imported. Indonesia also still imports 60 percent of its condensate demand which is estimated to reach 100,000 tons a day. The remaining 40 percent is coming from Senipah, East Kalimantan. (*)