INDONESIA: Indonesia agrees to 'bail out' Tuban Petro; company moves forward with expansion

Tuban Petrochemical Industries (Tuban Petro) will proceed with expansion plans after the government of Indonesia decided to "bail out" the company, reported the Jakarta Post. Tuban Petro's first project, expected to cost approximately USD 17.5 million, involves expanding propylene production capacity of its Polytama subsidiary to 350,000 t/y in 2020. The company also plans to build a second propylene plant for Polytama at a cost of around USD 400 million. Capacity of the plant and a schedule were not available.

In addition, Tuban Petro is expected to invest about USD 300 million to set up a new facility to produce raw materials for propylene production. Construction is anticipated to begin next year. With these projects, Tuban Petro expects it will no longer rely on imports of propylene and its raw materials. It currently imports 60 % of its propylene, as Polytama can only produce 40 % of its needs.

Source: Weekly “PetroChemical News”, Durham, NC, USA; 18 Nov 2019
(Syed Rashid Ali, Karachi, Pakistan)