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President inaugurates Chandra Asri’s polyethylene plant in Banten

Jakarta (ANTARA) – President Joko Widodo (Jokowi) inaugurated national petrochemical company PT Chandra Asri Petrochemical Tbk’s new plant, worth US$380 million, or Rp5.7 trillion, for production of polyethylene in Cilegon, Banten Province, on Friday.

“PT Chandra Asri is a pioneer in the petrochemical industry in the country. We must support investment in this field to stop imports,” he remarked while inaugurating the plant.

With the new plant becoming operational, PT Chandra Asri’s polyethylene production capacity will increase by 400 thousand tons to reach 736 thousand tons annually.

The president further highlighted the balance of trade in all chemicals suffering a deficit of Rp193 trillion, with exports, standing at Rp124 trillion, and imports, touching Rp317 trillion.

Related news: Petrochemical set to become future downstream industry

The demand for domestic polyethylene currently reaches 2.3 million tons annually, while the national polyethylene production stands at 280 thousand tons per year. To meet the domestic requirements, the country continues to import 1.52 million tons of polyethylene annually.

“The figure is very large. Hence, we provide tax holiday and tax allowances (to domestic polyethylene investors) since the deficit is still (high) at Rp193 trillion. What is it for? If we can produce it, why do we have to import it,” he stated.

The president lauded PT Chandra Asri for its efforts to develop its business that he described as a concrete step to overcoming the country’s trade deficit.

“Construction of the new plant is a concrete step. This is what our country really needs,” he remarked.

During the inauguration of the new plant, the president was accompanied by Industry Minister Agus Gumiwang Kartasasmita and State-Owned Enterprises Minister Erick Thohir.

Related news: Indonesia offers Korea’s SK Group to invest in petrochemical industry

 

Article source: https://en.antaranews.com/news/137740/president-inaugurates-chandra-asris-polyethylene-plant-in-banten

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