Under a recently-signed agreement, Indonesia holds 51 percent of shares in the joint venture while its Thai partner owns the remaining 49 percent.
PT Pertamina Director Chrisna Damayanto said the joint venture will build a petrochemical complex covering a total area of 450 hectares in South Sumatra province.
According to Chrisna Damayanto, the joint venture, scheduled to be operational by 2018, will be able to meet at least 30 percent of the total domestic market share of the industry.
The project is estimated to have a total capital of 4-5 billion USD, Bowon Vongsinudo, PTTGC President and CEO said. One completed and put into operation, it is expected to help Indonesia reduce its dependence on imported petrochemical products.
Indonesia has to import an amount of petrochemical products worth 5 billion USD per year because the country’s industry cannot meet the increasing demand of its growing economy in recent years.
Apart from Thailand, Honam Petrochemical Corporation of the Republic of Korea plans to build a 5 billion USD-petrochemical complex in Cilegon, Banten province.-VNA