Jokowi Wants To Speed Up Development Of The Tuban Petrochemical Refinery In Three Years

Jokowi Visits Petrochemical Oil Refinery in Tuban (doc. Instagram Setkab)

JAKARTA - President Joko Widodo visited the PT Trans Pacific Petrochemical Indotama (TPPI) refinery in Jeno District, Tuban Regency, East Java. In this area, the petrochemical industry and its derivative products from fuel oil (BBM) will be developed.

"Yes, this is the TPPI Trans Pacific Petrochemical Indotama refinery. This is one of the largest refineries in our country, which can produce aromatic products, both para-xylene, ortho-xylene, gasoline, toluene, heavy aromatics, and also a fuel producer, premium. , pertamax, LPG, diesel, kerosene, this can be for everything, "said the President to the media crew after the review.

Seeing the large potential of the refinery, Jokowi asked State-Owned Enterprises (BUMN) Minister Erick Thohir, President Director of PT Pertamina (Persero) Nicke Widyawati, and President Commissioner of PT Pertamina (Persero) Basuki Tjahaja Purnama to immediately complete the refinery.

Moreover, the TPPI Refinery has been built for more than two decades, but has stalled due to several problems. Until finally TPPI was acquired, PT Pertamina (Persero) to become an integrated petrochemical factory.

"Therefore, earlier I conveyed to the Minister of BUMN, the Managing Director of Pertamina, and the Pertamina Commut so that not more than 3 years, everything must be completed. The request was 4 years, 3 years must all be completed," said Jokowi.

After TPPI is acquired, PT Pertamina (Persero) will build TPPI into an integrated petrochemical factory. If it has been in full production, said the President, TPPI has the potential to save foreign exchange up to $ 4.9 billion or around Rp. 56 trillion.

"If possible, the maximum production can save USD 4.9 billion in foreign exchange. This is very big. Approximately 56 trillion. This is a substitute. Because every year we import, import, import. Even though we can make it ourselves, but we don't do it," he said. "he added.

On various occasions such as closed meetings, plenary meetings, to meetings with regional heads, the Head of State repeatedly conveyed the importance of substituting imported products, one of which is petrochemicals. Jokowi hopes that, after maximum production, the petrochemical industry can help solve the current account deficit problem experienced by Indonesia.

"So we hope that if we can really produce at a maximum, which is called the current account deficit, our balance sheet will be much better. This is one of the keys here. What does it mean? This is solving problems, solving problems, solving problems from the agenda. large country that has not been completed for decades, "he said.

Regarding share ownership, after the restructuring, Pertamina holds a majority stake of 51 percent. Meanwhile 47 percent of shares are held by the government, in this case the Ministry of Finance. The remaining 2 percent is still held by the old owner, namely PT Silakencana Tirtalestari.

"Yes, it is still 2 percent, but we will finish it soon. I said January. January must be completed," he said.

President Director of PT Pertamina (Persero) Nicke Widyawati in his press release stated that the petrochemical business market opportunity in Indonesia is around IDR 40-50 trillion per year. In addition, the petrochemical business has a higher margin than BBM.

"The construction of the Petrochemical industry complex will further ensure the sustainability of the company's business, because it is in line with future business trends," said Nicke.

The development of the petrochemical industry, continued Nicke, will also be more efficient because it is integrated with refineries, so that petrochemical byproducts can be reused by refineries, either for refinery fuel itself or into fuel products.

"Supporting infrastructure and utilities can also be used jointly by reducing energy costs by 10 percent and personnel costs by 10 percent, so that operational costs can drop by up to 15 percent," added Nicke.