JAKARTA (Rambu Energy) – Indonesia’s petrochemical industry is still facing scarcity of raw materials to produce petrochemical products as indicated by high import level. Every year, Indonesia imports around 1.5 million tons of raw materials to produce petrochemical products.
“Given this condition, the downstream industry such as food and beverage has to wait between three to six months as it takes longer time to import,” Indonesia Olefin and Plastic Industry Association (INAplas) secretary-general Fajar A.D. Budiyono was quoted by Bisnis Indonesia as saying.
He said based on the association’s data, of the total imports, 900,000 tons are polypropylene, 550,000 tons of Polyethylene, 40,000 tons of polystyrene and polyethylene terephalate (PET) at around 20,000 tons. The import value of these imported products reached US$1,700 per metric ton.
The need of polyethylene reached 1.2 million tons this year. Of this, domestic industry only has the capacity to supply 700,000 tons. Polypropylene and polyethylene are main materials to produce petrochemical product. Ethylene and propilene are derivative products of oil and gas.
As a result of lack of raw materials, the utilization of petrochemical industry at present reached at only 60 percent. In the first nine months to September this year, domestic polypropylene of PT Polytama Propindo is yet to resume operation.
Budiyono said petrochemical industry demands 1.4 million tons this year, however, domestic supply only stood at 525,000 tons. The remaining need is imported. (*)