Indonesia's petrochemicals industry welcomes large expansion, urgently needs to boost NAFTA capacity

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The Indonesian Ministry of Industry supports the construction of new refineries to increase NAFTA capacity, meet the needs of the petrochemical industry, reduce import dependence, and promote the comprehensive development of the domestic petrochemical industry.

The Indonesian Ministry of Industry recently stated that in order to enhance energy and industrial security, especially the competitiveness of the petrochemical industry, it will fully support the Ministry of Energy and Mineral Resources (ESDM) in advancing an ambitious plan to build a total capacity of up to 1 million barrels per day. Refinery. This initiative aims to meet the huge demand for raw materials in the petrochemical industry, while promoting the development of the downstream industry chain.

According to the Minister of Industry, the construction of the new refinery will optimize the production of NAFTA (a petroleum component that can be used in gasoline or petrochemical feedstock), thereby reducing import dependence and increasing the added value of domestic petrochemical products. He pointed out that NAFTA, as the "mother of petrochemicals", domestic production can not only save a lot of import costs, but also promote employment and increase the self-sufficiency rate of domestic pharmaceutical raw materials.

currently, Indonesia has only six refineries with an annual output of only 7.1 million tons of NAFTA, which is far from meeting the domestic demand of 9.2 million tons per year, resulting in 2.1 million tons of imports per year. To fill this gap, the Ministry of Industry has proposed to ESDM a new refinery in the Tuban area, which already has a PT TPPI petrochemical plant. PT TPPI currently has both petrochemical and fuel production modes, aiming to build an integrated factory integrating petrochemical compounds such as olefins and aromatic products, which is widely used in textiles, pharmaceutical raw materials and solvent materials.

However, NAFTA production facilities are not yet perfect, and in order to achieve the integration of the petrochemical industry, there is an urgent need to establish a NAFTA-based olefin center in the Tuban region. The Minister of Industry stressed that this large industrial center will cover a number of key sectors such as cement, petrochemical, oil and gas and offshore industry, which coincides with the GRR project planned by PT Pertamina to jointly promote the comprehensive development of Indonesia's petrochemical industry.

It is

worth noting that there are several large-scale petrochemical projects that are about to start, consuming about 8 million tons of NAFTA per year. Therefore, increasing NAFTA capacity has become a top priority for the development of Indonesia's petrochemical industry.

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