The operation of factory of PT Synthetic Rubber Indonesia (SRI) with a capacity of 120,000 tons will increase the added value of butadiene and styrene monomer, which are already produced in the country.
It will also strengthening the structure of petrochemical industry from upstream to downstream, the Minister said.
"The construction of the factory of PT Synthetic Rubber Indonesia proves that investors are still interested in doing business in Indonesia," Airlangga said.
Development of synthetic rubber industry is needed to keep pace with the modernization of economy, he said.
Synthetic rubber is used widely for tires, conveyor belts, rubber components, footwear and electric cable coat.
Currently, there is only one synthetic rubber producer with a capacity of 75,000 tons per year. Meanwhile, synthetic rubber requirement in the country reached 230,000 tons in 2017. Therefore, imports are still needed.
President Director of SRI, Brad Karas, said the company is the first factory using environmentally friendly technology of Michelin.
PT SRI produces synthetic rubber the type of "Solution Styrene Butadiene Rubber (SSBR) and Neodymium catalyst - Butadiene Rubber (NdBR) both environmentally friendly.
SRI is a joint venture company between Michelin of France and PT Chandra Asri Petrochemical Tbk established in June 2013 with share split of 55 percent and 45 percent respectively.
The investment in the factory was cost US$435 million. SRI is granted the incentive "tax holiday" from the government.
SRI began commercial operation in August 2018 and already exported US$250 million.
Based on data at the Industry Ministry, Indonesia`s exports of manufactured products have increased from year to year. In the third quarter of 2018, exports of manufactured goods were valued at US$97.52 billion - up 5.71 percent from US$92.25 billion in the same period last year.
Reporter: Antara
Editor: Andi Abdussalam
Copyright © ANTARA 2018
