Jakarta (ANTARA News) - Industry Minister Airlangga Hartarto said, based on analysis and market demand, methanol industry is the right anchor industry at the Teluk Bintuni Petrochemical Industrial Estate of West Papua Province.

"Metahnol requirement in Indonesia is predicted to reach 871,000 tons in 2021, but the country only has one company PT Kaltim Methanol Indonesia producing the chemical material," Airlangga said here on Monday.

Anchor industry of an industrial estate is one that is expected to be able to attract many industries to the industrial estate.

Airlangga said PT Kaltim Methanol Indonesia could supply only 330,000 tons of the domestic requirement for methanol a year.

In addition, the choice on methanol industry as the `anchor industry` is also considering the potential of the derivatives of methanol such as Polyethylene/polypropylene, Dimethyl Ether (DME), methyl tertiary-butyl ether (MTBE), etc.

"We have strong confidence that the Petrochemical Industrial Estate in Teluk Bintuni could grow as other petrochemical industrial estates that has expanded rapidly at present," the minister said.

He cited the petrochemical industrial estate in Bontang, East Kalimantan Timur, which is the country`s first cluster of petrochemical industrial estate which run well for more than 30 years.

Currently, the country has five petrochemical factories in the East Kalimantan Industrial Estate (KIE) in Bontang with various products including ammonia, urea fertilizer, methanol, and ammonium nitrate.

Reporting by Sella Panduarsa Gareta
Editing by Rahmad Nasution

Reporter: antara
Editor: Heru Purwanto
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