Pertamina, Chandra Asri to jointly build polypropylene plant

State owned oil company Pertamina and Chandra Asri Petrochemical Tbk, the country?s largest petrochemical company, plan to jointly build a polypropylene plant with total investment of about US$200 million, Kontan reported on Tuesday

The two companies will set up a joint venture to operate the polypropylene plant which would be located in Pertamina?s refinery plant VI complex in Balongan, West Java.

Director for processing of Pertamina, Chrisna Damayanto, said in Jakarta last week that the operation of the polypropylene plant was expected to reduce imports of petrochemical products, which were estimated to reach US$5 billion a year.

Meanwhile, Chandra Asri?s President Director Erwin Ciputra said that the construction of the polypropylene plant would last for about 24 months, faster than usual as Pertamina has operated a crude oil processing plant, which would provide the raw materials for the production of the polypropylene, the main raw materials for plastic production.

He hoped that the new polypropylene plant would be able to begin commercial production in 2015.

Meanwhile, Pertamina also signed on Monday a cooperation agreement with SK Global Chemical of South Korea. Under the agreement, the two companies will build a petrochemical complex in Indonesia.

Pertamina?s President Director Karen Agustiawan said that the development of the new petrochemical complex would turn Pertamina as the country?s main petrochemical producer in 2017.

?In 2025, our target is to make Pertamina as an international energy company which controls the Asian market,? she added.(*)