JGC of Japan to build petrochemical plant

Japan Gas Corporation (JGC), one of major oil and gas companies in Japan, is seeking a local partner to jointly build and operate a petrochemical plant in Indonesia, Bisnis Indonesia reported on Wednesday.

Industry Minister M. S. Hidayat said in Jakarta on Tuesday that JGC which has operated in Indonesia for almost 40 years had asked the ministry to find a local partner for the company to jointly develop the petrochemical plant.

Hidayat said that the Japanese company would be ready to set up a 50:50 joint venture to build and run the petrochemical plant.

JGC also promised that the local partner would be in charge in running the petrochemical plant, the minister told reporters following a meeting with a Japanese trade delegation led by the chairman of the Japan Indonesia Association Inc (Japindla) Yusuo Fukuda at his office.

Hidayat said he strongly supported the Japanese company?s plan because if it was realized it would help reduce Indonesia?s reliance on imports. According to the minister, imports petrochemical products such as polypropylene reaches about US$5.1 billion a year.

In 2011, imports of polypropylene totaled 50,000 tons, those of butane and ethylene reached 63,000 tons and 300,000 tons, respectively. (*)