The Ministry Of Industry Says There Is A Petrochemical Industry Investment Plan Of 31.41 Billion US Dollars Until 2030

Acting Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Reni Yanita (second from the left). Photo: Theresia Agatha/VOI

The Ministry of Industry (Kemenperin) said that the investment plan in the petrochemical industry reached 31.41 billion US dollars until 2030. This needs to be encouraged because the utilization of the Indonesian petrochemical industry is still very small.

Acting (Plt) Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry, Reni Yanita, explained that this figure was obtained from an investment plan carried out by PT Chandra Asri Perkasa of 5 billion US dollars, PT Lotte Chemical Indonesia 4 billion US dollars, PT Sulfindo Adiusaha 193 million US dollars, Olefin TPPI Tuban 3.9 billion US dollars Project and PT Pertamina Rosneft Processing and Petrokimia amounting to 16.5-18 billion US dollars.

"So, indeed, the plan for the petrochemical industry project until 2030 is 31.41 billion US dollars," said Reni in a media discussion on Permendag Number 8 of 2024, the Real Form of National Petrochemical Industry Denormalization at the Ministry of Industry office, Jakarta, Monday, July 8.

Reni said the investment plan was to meet the needs of national plastic raw materials which were derivatives of the petrochemical industry. Given, the total imports of the sector are still quite high.

The total imports of petrochemical products as a whole in 2022 reached 7.75 million tons which had a trade value of 10.5 billion US dollars and increased its quantity to 8.5 million tons in 2023.

According to Reni, to realize the investment plan, it is necessary to adjust regulations that support the sustainability of the petrochemical industry ecosystem. As well as implementing restrictions and restrictions on imports for upstream and downstream products in this sector. so that the domestic industrial climate is well maintained.

"Several investors have planned to invest in plastic raw materials. However, due to regulations aimed at controlling imports, investors are thinking about investing again in Indonesia," he said.

"So, if it is not accompanied by the right import policy, maybe in a few decades we will get it. Or even switch to our neighboring country, ASEAN," he added.