Indorama to invest $5b in petrochemical and coal gasification

Indorama Group, one of the world?s polyester producers, will invest up to US$5 billion until 2015 in polyester, petrochemical and coal gasification industries in Indonesia, the business group?s senior executive has said.

Speaking to reporters following a meeting with President Susilo Bambang Yudhoyono in Jakarta on Monday, Indorama chairman Sri Prakash Lohia said that about $2.2 billion of the total investment commitments would be spent this year for the expansion of its polyester plant in Purwakarta, West Java and coal gasification in Sumatra.

Based on the business group?s proposal to the Investment Coordinating Board (BKPM), the business group would spend another US$2.8 billion in petrochemical, oil and gas industries.

?We will invest about $5 billion in Indonesia until 2015 in oil, gas and petrochemical industries,? Lohia said.

During the meeting with the President who was accompanied by Coordinating Minister for the Economy Hatta Rajasa, Industry Minister MS Hidayat and BKPM chairman Gita Wirjawan, the representatives of the business group asked the government to provide tax holiday and tax incentives to support their investment plans.

Following the meeting, Hatta said that the government would study the business group?s requirements. (*)