JAKARTA – The Minister of Industry Airlangga Hartanto said Thai giant Siam Cement Group (SCG) plans to invest $ 5.5 billion worth of petrochemical projects or around Rp75 trillion in Cilegon. SCG met President Joko Widodo discussing the company’s plans.
Airlangga said the project will be the largest petrochemical project in Indonesia and Thailand.
“It will certainly be invested US $ 5.5 billion and this will be planned hopefully this can be produced in 2022,” said Airlangga after SCG officials met Jokowi at the Merdeka Palace on Thursday (15/08/2018).
According to him, the President supports this plan because Indonesia has an import dependence on petrochemicals.
In comparison, Airlangga said similar factory capacity in Thailand is 5 million tons and Malaysia 3 million tons while Indonesia only 1 million tons with imports 1 million tons.
As is known, SCG owns 30% shares of petrochemical company in Indonesia, PT Chandra Asri Petrochemical Tbk. who now owns a factory in Cilegon, Banten.
“Therefore, if this could be increased then the downstream of the industry would go ahead, and they asked for a tax holiday, and Mr. President said the tax holiday in the end of this month would be issued,” he said.
Airlangga said the upstream sector is proposed by the Ministry of Industry to get a tax holiday. In addition to investing with great value, the need for products to be produced by the factory is still imported at this time.