Energy and Mineral Resources Minister Ignasius Jonan noted in a statement here on Saturday that with increased competitiveness in the energy sector, adjustment and innovation are vital to boosting business in the oil and gas industry.
"Oil and gas are still important, petrochemical is the future. Several derivative products can be produced from oil," Jonan stated.
Jonan remarked that oil and gas are yet primarily perceived as fuel energy rather than raw material for petrochemical products.
"This culture in the oil and gas business must be adjusted," the minister emphasized.
He stated that dependence on oil and gas derivative products should be viewed as an opportunity for the petrochemical industry. The government has tasked state-run oil firm Pertamina to build refineries to process crude oil into petrochemical products.
Presently, Pertamina only has petrochemical production capacity reaching 700 kilotons per annum. The production capacity is expected to rise with the existence of two new refineries in Tuban and Bontang and four existing refineries in Balikpapan, Cilacap, Balongan, and Dumai that have been revitalized.
Pertamina's petrochemical production capacity is expected to reach 6,600 kilotons per annum after revitalization is completed in 2026. Related news: Foreign investment in petrochemical industry to enter Indonesia
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