Minister Of Industry Agus Says There Is Interest In China Investing In The Downstream Of The Indonesian Chemical Industry

Minister of Industry Agus Gumiwang Kartasasmita during a meeting with the ranks of Beiken Energy Group Co., Ltd. in Shanghai, China. (Photo: Doc. Ministry of Industry)

Minister of Industry (Menperin) Agus Gumiwang Kartasasmita stated that there was an interest from China to enter the Indonesian chemical industry, after holding a meeting with an energy company from China, Beiken Energy Group Co., Ltd in Shanghai, China, Friday, October 10.

The meeting was held to establish Beiken's strategic collaboration in the development of the Coal to Chemical project.

The goal is to strengthen the supply chain of the national chemical industry through the use of coal as raw material for the petrochemical industry with high added value.

"Collaboration with Beiken Energy is expected to accelerate the downstreaming of the chemical industry, strengthen the national supply chain and increase substitution for imports of chemical raw materials," Agus said in his official statement, Sunday, October 12.

Agus highlighted the great potential of Indonesia in the development of the Coal to Chemical industry, especially to produce derivative products such as methanol, olefin, propylene, polyoleffin, BDO and other advanced chemicals.

Beiken also plans to develop a Coal to Chemical project, especially in the field of low-calorie coal gasification.

Moreover, Beiken is also known for its superior technology, namely coal gasification, which is able to convert coal into high-value chemicals such as polyoleffin and BDO (1.4-Butanediol).

This technology is considered to be a solution for Indonesia, which wants to switch from the carbonization-based coal industry to the added-value chemical industry.

According to Agus, Beiken's technology can also be used to strengthen the downstreaming of the national chemical industry.

"Beiken technology can be used to optimize low-calorie coal processing into added-value chemicals. This is in line with the national downstream agenda to strengthen the structure of the basic chemical industry and reduce dependence on imported raw materials," he said.

Dia menilai, pengembangan Coal to Chemical menjadi bagian penting dalam strategi industrialisasi Indonesia yang menekankan peningkatan value creation dan efisiensi rantai pasok.

"Dengan dukungan mitra strategis seperti Beiken Energy, kami optimistis pengembangan proyek Coal to Chemical dapat mempercepat terbentuknya ekosistem industri kimia tangguh, efisien dan berdaya saing global," pungkas Agus.

He assessed that the development of Coal to Chemical is an important part of Indonesia's industrialization strategy which emphasizes increasing value creation and supply chain efficiency.

"With the support of strategic partners such as Beiken Energy, we are optimistic that the development of the Coal to Chemical project can accelerate the formation of a strong, efficient and global competitive chemical industry ecosystem," concluded Agus.