Permendag 8/2024 Potentially Hampers Petrochemical Industry Investment 31.41 M US Dollars

Illustration (Photo: Doc Antara)

JAKARTA - The Ministry of Industry views that the implementation of Permendag Number 8 of 2024 has an unfavorable impact on the industrial sector, including the Petrochemical industry.

Adapun rencana investor di sektor industri Petrokimia didang-gadang mampu mencapai 31,41 miliar dolar AS hingga 2030 mendatang.

"So, if it is not accompanied by the right import policy, maybe in a few decades we will get (investment)," said Acting Director General of Chemical, Pharmaceutical and Textile Industries (IKFT) of the Ministry of Industry Reni Yanita 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 added that some of these investors are even feared to invest in neighboring Indonesia. "Or even they (investors) turn to our neighboring countries, namely ASEAN," he said.

In fact, said Reni, the utilization of the Petrochemical industry in Indonesia is still relatively small.

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 industrial ecosystem.

As is the case with implementing import prohibitions and restrictions (laltas) for upstream and downstream products in this sector. Thus, 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.

Previously, the Ministry of Industry (Kemenperin) said that the investment plan in the Petrokimia industrial sector reached 31.41 billion US dollars until 2030.

Acting 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 Project 3.9 billion US dollars and PT Pertamina Rosneft Processing and Petrokimia of 16.5-18 billion US dollars.

"So, indeed the plan for the Petrochemical industrial project until 2030 is 31.41 billion US dollars," said Reni.