Agus Gumiwang Will Prepare Incentives For Sinopec Investing In Indonesia's Petrochemical Sector

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita. (Photo: Doc. ANTARA)

Minister of Industry Agus Gumiwang Kartasasmita said his party had prepared fiscal and non-fiscal incentives for the Sinopec Engineering Group (SEG), which is a company from China to invest in the petrochemical sector of Indonesia.

Agus said the incentives were the easing of certain import regulations for operational equipment, tax reductions, and ease of licensing.

"We believe this cooperation will increase the economic growth and industry of the two countries. We thank the SEG for showing interest in cooperation," he said as quoted by ANTARA, Friday, June 14.

He added that the offer was given by his party because the SEG business portfolio is worldwide, with its field of excellence, namely engineering, technology, and construction.

Meanwhile, in 2023, the company will handle up to 1,043 projects globally dominated by the petrochemical industry sector.A

Currently, he said, Indonesia's petrochemical industry production capacity reaches more than 14 million tons per year.

However, this figure is still not able to meet the domestic industry.

So, he considered, with the gap between supply and demand for petrochemical products, it could be an investment opportunity for SEG to build a new petrochemical sector in the country.

"We are sure that if we can invest and work together with partners in Indonesia, it will also be an advantage for SEG," he said.

In June 2023, Sinopec inaugurated its first environmentally friendly hydrogen production facility in Kucha, Xinjiang, China.

The plant consists of a solar power plant with a capacity of 300 megawatts (MW), electric transit, and hydrogen electrolysis with a capacity of 20 thousand tons per year.

At the same time, Indonesia also has a focus on developing the hydrogen industry, therefore it is hoped that SEG can also become one of the main contributors to the energy transition in the country.