TEMPO.CO, Jakarta - Pertamina has acquired Tuban Petrochemical Industries (TPI) for Rp3.1 trillion. With the transaction, Pertamina is now the majority shareholder of TPI, the parent company of aromatic factory Trans Pacific Petrochemical Indotama (TPPI), based in Tuban, East Java.
The transaction was in line with what President Joko Widodo wanted. In a limited meeting on October 30, Jokowi conveyed his desire to turn TPPI's refinery into a petrochemical industrial area.
The official announcement of the acquisition was published on the website of the Finance Ministry's Directorate General of State Assets, November 19. It showed the signing of a purchase agreement by Pertamina CEO Nicke Widyawati and Tuban Petrochemical president director Sukriyanto on November 18.
The government took over Tuban Petro through Pertamina to revive the TPPI refinery, which had ceased operations because they did not have the money for it. The optimization of TPPI is expected to overcome the high dependence on petrochemical imports. So far, the domestic petrochemical industry is only able to meet 40 percent of national needs.
The government calculated that once the TPPI refinery operates and is optimally developed, imports of major petrochemical products will decrease by around 6,200 kilotons per year by 2030. This will curb the current account deficit and secure foreign exchange by up to US$6.6 billion in the same year.
The Finance Ministry also projects a potential tax revenue of some US$1.3 billion as well as employment opportunities for an estimated number of 2,000 workers.
RETNO SULISTYOWATI | MAJALAH TEMPO