TEMPO.CO, Jakarta - LG International Chief Representative Jee Hoon-kang said yesterday that his company has pledged a US$1.2-billion investment at the Special Economic Zone (KEK) in Bintuni Bay, West Papua. LG will construct a petrochemical factory to produce methanol.
According to Kang, LG will complete the factory feasibility study within a year after the natural gas allocation for the energy and raw material has been confirmed. Kang projected that the production capacity of the factory would reach one million tons per annum.
"We hope that we can start the project with the government soon," he said.
Harjanto, Industry Ministry’s Director General for Base Manufacturing Industry, agreed on following up LG’s request.
"We will draft a Memorandum of Understanding (MoU) of the cooperation [with LG]," Harjanto said, promised that petrochemical industry would be prioritized and governed by a presidential decree.
The government has planned on developing an economic zone in Bintuni Bay since 2010 as a petrochemical industry base. Other companies joined as investors in the project include Germany’s Ferrostaal, Japan’s Sojizt and PT Pupuk Indonesia.
INDRI MAULIDAR
