PT Chandra Asri Petrochemical Tbk (CAP) has started up the first Butene-1 (B1) and Methyl Tert-butyl Ether (MTBE) plants in Indonesia. The MTBE plant has a capacity of 128,000 tons/year and will supply domestic needs for octane booster, while the B1 plant has a capacity of 43,000 tons/year, of which 33,000 tons will be used for CAP’s operational needs, with the rest targeted for the domestic market.
Both plants were built by Toyo Engineering Corporation (TOYO) and PT Inti Karya Persada Tehnik (IKPT) in 2018 and were completed on schedule despite the COVID-19 pandemic. The new units are expected to reduce Indonesia’s reliance on imports of methanol and its derivatives. Data from the Ministry of Industry showed that Indonesia imported IDR174 trillion ($) of methanol and its derivatives in 2018.
CAP President Director Erwin Ciputra said the new units were expected to help the government achieve a target to reduce imports by 35% in 2022. Meanwhile, Minister of Industry Agus Gumiwang Kartasasmita noted that the petrochemical industry in Indonesia has an important role in substituting imports.