(MENAFNEditorial)
JAKARTA March 3 2015 – The government through the Ministry of Industry projects the production capacity of upstream petrochemical industry to reach 157 million tons per year.
The number is made based on the estimation during the next five year period until 2019. The production capacity is specially set for olefin petrochemical which is usually absorbed as plastic basic materials (resin).
According to Secretary for Directorate General of Manufacture Industry Basis of the Ministry of Industry Setio Hartono the production maximization requires the government’s more solid involvement related to the gas and coal allocation as the petrochemical basic materials.
The global weakening of oil and gas prices could be used as a momentum to increase the down streaming in the country. Compared to the export the priority should have been made to supply oil and gas based upstream industry such as petrochemicals.
“The gas prices reportedly fall into US$3 per MMBTU so why the export is required. We better to have the process in the country that would create larger added values” he said to Indonesia Business Daily Monday (3/2/2015).
In line with the increase of production capacity which indicates the growth of demand the need of basic materials also increases. It requires around 73 million tons of gas per year and 124 million tons of coal per year for the next five years. Read more…
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