Indonesia’s state-owned energy company PT Pertamina, through its subsidiary PT Kilang Pertamina Internasional (KPI), on Tuesday signed a Head of Agreement (HoA) with PT Chandra Asri Petrochemical Tbk (CAP) to develop and advance the domestic petrochemical industry. The HoA followed a memorandum of understanding (MoU) signed by both companies in October 2019 to synergize in the petrochemical business.
Pertamina President Director Nicke Widyawati said that the company is upgrading the upstream and downstream capacity of its facilities in Balikpapan, Balongan, Cilacap, and Dumai through Refinery Development Master Plan (RDMP). Widyawati noted that Pertamina has managed to produce petrochemical feedstocks at its refineries and is ready to cooperate with CAP to reduce Indonesia’s dependence on import petrochemicals. She also added that Pertamina would continue building and integrating its petrochemical plants and refineries until 2026 under its Long-Term Plan (RJPP).
On the other hand, CAP Commissioner Agus Salim Pengestu said the collaboration could take opportunities in the petrochemical markets at home and in Asia. Agus added that after the signing of this cooperation, the two parties would begin conducting feasibility studies. He also said the projects in the HoA are just the first step for further collaboration. He, however, did not provide details on projects under the agreement.
