State oil company Pertamina is set to build a world-class petrochemical facility in a joint venture agreement with Thailand’s PTT Global Chemical, as per jakartaglobe.com. Officials from the two companies met in Jakarta on Monday to sign an agreement to perform a feasibility study for the petrochemical facility as well as to establish a joint venture. Pertamina expects the venture to be established by the end of this year, so that construction could begin immediately. Pertamina currently owns six oil refineries in Indonesia with a combined production capacity of one million barrels of oil per day, while PTT Global Chemical is a leading player in petrochemical industry. It owns several petrochemical facilities with a combined capacity of 8.45 mln tpa.
“Judging by the prospects of the petrochemical business in Indonesia and the opportunities to integrate [Pertamina’s] refinery and petrochemical businesses, we are targeting for the petrochemical business to become one of the core pillars of Pertamina’s growth,” Karen Agustiawan, the company’s president director, said in the statement. Karen added that the investment value of the joint venture would be between US$4-5billion. Construction is expected to commence next year, while the facility is expected to go on stream in 2018.