The Indonesian government is considering hiving off its entire 70% stake in PT Tuban Petrochemical Industries (Tuban Petro) to state-run oil and gas company PT Pertamina. This decision follows failure of the company's recent attempt to reduce its stake failed. The other shareholders of the Tuban complex are Pertamina, Itochu Corporation, Tuban Petrochemicals Pte Ltd (a subsidiary of Thailand's largest conglomerate Siam Cement PCL), and Sojitz Corporation (formerly Nissho Iwai Corporation).
PT Perusahaan Pengelola Aset (PPA), which holds the government's interest in Tuban Petro, previously cancelled a plan to sell a 45% stake to businessman Hashim DJojohadikusumo, who reportedly agreed to pay 3.2 trillion rupiah.
Tuban Petro is seeking a US$400 mln loan for debt refinancing.
Pertamina owns 15% stake in Tuban Petro's unit Trans Pacific Petrochemical Indotama. The government would prefer to hive off it share to Pertamina as long as they are willing to pay a premium. Tuban Petro has a 59.5% stake in Trans Pacific, which runs a petrochemical plant in Tuban, East Java.
The Tuban petrochem plant has a combined capacity of 3.6 million tpa of petrochemicals products, comprising 1 million tpa of aromatics (500,000 ton paraxylene, 200,000 ton benzene, and 150,000 ton toluene), 1 million tpa of naphtha and 1.6 million tpa of kerosene and diesel. Pertamina's petrochemical products include polypropylene, methanol, pure Terephthalic Acid (PTA) as well as aromatics.