Mitsubishi to invest US$1.5 bln in Indonesia’s petrochemical industry

11-Jun-09

Mitsubishi plans to build a coal-based petrochemical factory at an investment outlay of US$1.5 billion in East Kalimantan’s petrochemical industry. Feasibility studies have been completed on the construction of the factory, and the company awaits approval from government to provide support facilities like infrastructure and tax incentives to ensure continuity in the factory`s operation. Mitsubishi also awaits confirmation about coal supply certainty. It needs about 10 million tons of coal as feedstock at the plant. Indonesia has a large potential for petrochemical investment as it is rich in raw materials such as oil, gas and coal reserves. A major drawback is miniscule government support such as infrastructure and tax incentive as compared with that of other counties such as Malaysia, Thailand and Singapore.