Tuban Petro Gets An Injection Of Rp2.4 Trillion In Funds, Ready To Speed Up Construction Of Petrochemical Factorys

JAKARTA - The development of the national petrochemical industry through PT Tuban Petrochemical Industries (TubanPetro) Group, will be the answer to the problem of still high imports of petrochemical materials which are one of the obstacles for Indonesia's trade balance.

In the Extraordinary General Meeting of Shareholders Tuban Petro, shareholders agreed to increase capital of IDR 2.4 trillion through the expenditure of new shares series B, which will later be fully taken by PT Pertamina (Persero).

President Director Tuban Petro Sukriyanto, said that the decision to approve Series B's new share is in line with the results of the Tuban Petro EGMS on October 6, 2022.

With the issuance of new Series B shares taken entirely by Pertamina, now PT Pertamina (Persero) is listed as the majority shareholder of Tuban Petro with a percentage of 63.27 percent, followed by the government, in this case the Minister of Finance of the Republic of Indonesia, at 35.22 percent, and PT Pertamina Pedeve Indonesia at 1.51 percent.

"The implementation of Pertamina Capital deposit to Tuban Petro is tentative on November 30, 2022," said Sukriyanto, Saturday, November 26.

After the capital deposit is completed, Sukriyanto added, a report will be made to the Ministry of Law and Human Rights of the Republic of Indonesia regarding the amendment to Tuban Petro's Articles of Association regarding the increase in issued and paid-up capital.

Effective from the date of receipt of the notification of the amendments to the Basic Budget from the Ministry of Law and Human Rights of the Republic of Indonesia.

Furthermore, Tuban Petro will increase capital in its subsidiary, Polytama, for the implementation of the Balongan double capacity PP 2 project.

Just so you know, currently the Balongan PP 2 project has also completed a number of stages. In terms of licensing, business expansion, location, recommendations for regional spatial suitability, and land use recommendations have been completed.

As for other licensing processes such as environment, reliable recommendations, and jetty locations (sermaga), it is still in process. The PP 2 Balongan project is estimated to require funding of up to 323.3 million US dollars with an equity portion of 160 million US dollars.

Polytama development is in line with the request of Indonesian President Joko Widodo regarding the optimization of the petrochemical industry to reduce import needs and to meet the demand for domestic plastic seeds. This effort is a strategic step for the company to further contribute to the country.

The Polytama production capacity is doubled, continued Sukriyanto, which is expected to reduce Polypropylene imports, by increasing domestic Polypropylene production. Then, maximize the utilization of Propylene products from refineries owned by PT Kilang Pertamina Internasional (KPI).

"Polytama will produce, market, and distribute all products produced by PP 2 Balongan," continued Sukriyanto.

After the additional capital process is completed, further preparation of the Front- End Engineering Design (FEED) is carried out which is targeted to be completed within six months. After FEED is completed, the construction stage will be continued.

In the implementation of the development of PP 2 Balongan, Tuban Petro coordinated with Pertamina Subholding, namely PT Kilang Pertamina Internasional (KPI). Sukriyanto emphasized that Tuban Petro is fully committed to managing petrochemical refinery projects to reduce imports of petrochemical derivative products.