A joint petrochemical complex planned by CPC Corp., from Taiwan and state-owned energy producer, PT Pertamina is to be built in Balongan, West Java. The projects is estimating need costs US$12 billion and to start operating in 2026.
Coordinating minister for economic affairs, Airlangga Hartarto told reporter that both have entered the final stage of talks over the investment. Now, the two companies are finalizing details of the plan, which is one of 245 national strategic projects being run by President Joko Widodo’ government, which include toll roads, railroads, airports, harbors and refineries, as well as gas distribution and irrigation systems.
Early January, CPC Corp. announced is committed to investing $22 billion for the development of the Balongan petrochemical refinery. In 2018, the company and Pertamina has signed a $6.49 billion framework agreement for the project. Its estimating, CPC it will take an investment around $700 million to construct a new plant with an annual capacity of 1 million metric tons of ethylene.
The cooperation between the producers is carried out in the form of the construction of a global-scale naphtha cracker plant and a global petrochemical downstream development unit in Indonesia. The Indonesian operator is committed to diversifying its business into new and renewable energy segments to support the government program for an energy mix portions of 25% by 2025.