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Pertamina Ventures to Petrochemical Business

1 July 2015 16:06 WIB

TEMPO.CO, Jakarta – State oil and gas company PT Pertamina (Persero) decides to venture into the petrochemical business. Today PT Pertamina and PT Pupuk Indonesia signed a memorandum of understanding on the Study of a Coal and Gas-based Petrochemical Plant Development at the Ministry of SOEs.

Pertamina president director Dwi Soetjipto said the cooperation will drive the company towards the downstream sector. According to Dwi, there is potential for Pertamina to develop the sector.

Meanwhile, Pupuk Indonesia president director Arifin Tasrif hopes the collaboration with Pertamina can start over the next few years.  

"The cooperation agreement is aimed at making [both companies'] products available for use by state-owned enterprises," SOE Minister Rini Soemarno said after attending the MoU signing ceremony.

According to Rini, the collaboration will lower reduce the use of imported components, thereby increasing the value of state-owned assets, which now amounts to Rp4,500 trillion.

"I expect the assets to reach more than Rp10,000 trillion by 2019," the minister said.

The scope of cooperation includes preparation of feasibility study for the development of gas and coal-based petrochemical plants, as well as the EPC (Engineering, Procurement and Construction) and O&M (Operations and Maintenance) development through the acquisition of PT Rekayasa Industri.

SINGGIH SOARES



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