National petrochemical industry grows eight percent

Jakarta (ANTARA News) - Indonesia`s petrochemical industry is projected to grow by eight percent until the end of this year, according to the Indonesia Olefin, Aromatic and Plastic Association (Inaplas).

"Until the end of this year, the national petrochemical industry is projected to grow eight percent, up from last year`s realization at five percent due to expansion efforts by PT Chandra Asri Petrochemical Tbk. (TPIA) and PT Tuban Petrochemical Industries through its subsidiary PT Trans Pacific Petrochemical Indotama," Inaplas General Chairman Amir Sambodo said here on Wednesday.

He said petrochemical production could rise and consumption of plastic raw materials would also increase to consumption growth.

Last year PT Chandra Asri`s production was hindered due to an engine overhaul for about 1.5 months, he said.

"Besides optimization the petrochemcial indutry growth is also supported by price trend which is reaching the lowest at US$1,450 per ton for polyprophylene and US$1,350 for polyethylene down from US$1,600 per ton," he said.

He said the country`s GDP growth at 6.4 percent had also increased plastic consumption.

Other factor supporting national petrochemical industry growth is tax allowance for certain businesses and regions as stated in the Government Regulation Number 52 of 2011, he said adding that petrochemical industry is one of the industries that has received an incentive.

"With the incentive we hope the government-paid import duty and tax allowance could be directed more to downstream chemical industries such as olefin, aromatic, polyprophylene and polyethylene," he said.

He said petrochemical industrialists are also expecting additional support from the government through improvement of infrastructure facilities especially land transportation.

He said the government is also expected to accelerate the realization of the upstream-downstream integrated refinery development and its study on non-oil alternative petrochemical raw materials. (*)