Minister hopes Lotte to quickly realize petrochemical project
Saturday, February 18 2017 - 05:54 AM WIB
Minister of Industry Airlangga Hartarto expects South Korea?s Lotte Chemical to quickly realize its plan to develop a 2 million-ton per annum capacity petrochemical plant in Cilegon, Banten Province, to produce ethylene, propylene and other derivatives.
Airlangga said in a statement issued following a meeting with visiting President and CEO of Lotte Chemical Titan Holding Sdn. Bhd. Kim Gyo Hyun, and Investment Coordinating Board (BKPM) Chairman Thomas Lembong on Friday that the firm plans to invest up to US$4 billion in the project. ?We have asked them to quickly realize the investment plan to (help) meet domestic demand for chemical products to so that we no longer need import,? he said, adding that construction of the plant is projected to take about 4-5 years to complete.
With new capacity from Lotte Chemical and expansions by IDX-listed petrochemical firm PT Chandra Asri Petrochemical Tbk, Indonesia cold produce naphtha cracker-based chemical products of 3 million tons per year, making it as the fourth largest in Southeast Asia after Thailand, Singapore, and Malaysia.
?Lotte Chemical will produce 1 million tons per year of enthylene, 600 million tons of propylene, and other derivative products such as olefin and aromatic,? said Director General of Upstream Chemical Industry at the ministry, Muhammad Khayam.
He said that the ministry will help Lotte to get non-fiscal incentives such as tax allowance and tax holiday for the planned project.
Editing by Reiner Simanjuntak