Jakarta, April 1, 2020 – Starting this year, the Indonesian petrochemical industry opens an export market after the completion of the increase in the capacity of domestic polyethylene (PE) product factories.
The Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas) noted that the total domestic PE production at the end of 2019 reached 1,186,000 tons / year originating from Chandra Asri and Lotte Titan.
“The domestic PE production this time can meet domestic demand, so we can help reduce the burden of imports and the current account deficit,” said Edi Rivai, Director of Oapfin and Aromatic Inaplas, in an official statement on Wednesday (1/4/2020).
“Not only that, PE production this time also experienced a surplus that we are currently trying to export,” he said.
As a result of the lack of domestic supply of PE products in previous years, Indonesia imported PE products from various countries, such as ASEAN countries and Korea.
Based on data from the Ministry of Industry, the total demand for PE products in the country reached 1,005,000 tons / year.
Previously, Indonesia was a net country of importing PE products. However, with the expansion of Chandra Asri’s PE factory in the fourth quarter of 2019 increasing by 400,000 tons / year to 736,000 tons / year, Indonesia is now able to meet domestic PE needs to the maximum.
In addition, Chandra Asri has now been able to produce polymer types of metallocene linear low density polyethylene (m-LLDPE), a type that was previously only dependent on imported goods.
“We are certainly grateful to the Government of Indonesia for its support in creating a self-reliant petrochemical industry. Various incentives such as tax holidays in strategic sectors have successfully strengthened our industry, “Edi added.
Indonesia’s petrochemical industry is the backbone of various downstream industries, such as the food and beverage industry, automotive, transportation, tires, and so on.
Specifically for PE products in Indonesia, the application is in the form of food and beverage packaging, water tanks, plastic sheeting, chemical product storage drums, cooking oil jerry cans, high pressure drinking water pipes, fiber optic pipes, and low voltage XLPE cables for PLN.