Pertamina, Chandra Asri back down from plan to jointly build polypropylene plant
Friday, June 28 2013 - 04:59 AM WIB
By Godang Sitompul
State oil and gas firm PT Pertamina and Chandra Asri Petrochemical Tbk, the country?s largest petrochemical company, have decided to cancel plans to jointly build a polypropylene plant worth US$200 million.
Pertamina Director of Investment Planning and Risk Management M. Afdal Bahaudin told petromindo.com that, after a thorough assessment, the firms deem that the joint venture is not economically feasible.
Among the indicators considered were the unfavorable internal rate of return (IRR) and net present value (NPV), added Afdal without elaborating further.
The joint venture plan was first announced last December.
Editing by Dadan Wijaksana