Pertamina, Thai firm set up petrochemical JV

PT Pertamina Patra Niaga (PPN), a trading subsidiary of state-owned oil and gas firm PT Pertamina, and Thailand?s PTT Chemical International have set up a joint venture (JV) company called PT Indo Thai Trading (PT ITT), which will be engaged in the marketing of petrochemical products including polyethylene and polypropylene in Indonesia.

Pertamina said in a statement obtained Tuesday that the two firms have recently signed article of association for the joint venture company, in which PPN controls a 51 percent stake, and PTT Chemical International holds the remaining 49 percent shares. The latter firm is a subsidiary of Thailand?s leading petrochemical producer PTT Global Chemical.

?About 60 percent of demand for polyethylene and polypropylene are currently focused in Jakarta and West Java. PT ITT is expected to become the market leader in Indonesia,? said PPN Director of Finance and Administration, Budi Rahardjo.

Editing by Reiner Simanjuntak