Pertamina says its investment in TPPI project will be profitable

State-owned oil and gas company PT Pertamina denied the allegation of Professionals for Civil Society (MPM) that it joined the Trans Pacific Petro Chemical Indonesia (TPPI) project at Tuban without an in-depth study and the state can suffer losses from the US$400 million investment in that project.

Pertamina insisted that TPPI can be beneficial and has a strategic meaning in national fuel supply.

?TPPI is a profitable project and already passed through risk analysis,? Pertamina? public rations officer Hanung Budya said in a press release on Thursday.

Earlier, the MPM alleged that the TPPI has the potential to become another Karaha Bodas Company case because the project may end up in the middle of the road.

Hanung said Pertamina, which has 15 percent stake in the project, has conducted several studies to know about the risks involved.

TPPI project is a joint venture to build a petrochemical plant in Tuban and project was started by PT Titrtamas Majutama, Trans Pacific Petrochemical Pte. Ltd., Nisho Iwai and Itochu Corp. But in 1998, the project, which was completed 60 percent, was stopped due to the Asian financial crisis. (*)