Bahlil Disappointed Downstreaming Investment In The Petrokimia Minim Sector Only Rp14.9 Trillion

Investment Minister Head of BKPM Bahlil Lahadalia. (ANTARA)

JAKARTA - The Ministry of Investment/Investment Coordinating Agency (BKPM) recorded investment realization in the oil and gas sector, especially petrochemicals or petrochemicals of IDR 14.9 trillion in the third quarter of 2023.

Investment Minister/Head of BKPM Bahlil Lahadalia said that the investment value of downstreaming in the petrochemical sector was still lacking and had to be boosted in order to suppress imports.

"I think this is still lacking. We have to encourage ethanol and LPG because we are still importing 7 million tons per year. Our subsidy is estimated for LPG gas this year to reach almost Rp. 100 trillion," Bahlil said at a press conference in Jakarta, Friday, October 20.

Bahlil said the government continues to encourage efforts to find other alternatives for the oil and gas industry, especially in meeting LPG needs. However, the LPG developed in the country is not more expensive than imported LPG.

"Mr. President has ordered that we immediately look for alternatives for us to make LPG. But Pertamina must be fair too. Don't buy higher import LPG than LPG built domestically," he explained.

Bahlil said that his party had coordinated with SKK Migas to discuss downstreaming of ethanol, blue ammonia, LPG and fertilizer. "This is very dangerous, you know, because our imports are almost 7 million tons (gas), how many hundreds of trillions can come out," he said.

In addition, Bahlil hopes that state-owned companies can intervene in this case and will coordinate with PT Pertamina (Persero) regarding this matter.

"It is impossible for our industry to advance, we will encourage, we will discuss with Pertamina otherwise we will open options for others to also hold. Don't be a monopoly but it's expensive for what," he said.