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Pertamina & Taiwan CPC Will Develope the $8B Petrochemical Complex

Source: 6/5/2020, Location: Asia

Pertamina and CPC Taiwan have agreed to follow up on the collaboration to develop the Integrated Petrochemical Industrial Complex in Balongan, West Java with an investment of up to USD 8 Billion. The follow up to this collaboration was marked by the signing of the Head of Agreement (HOA) by Pertamina's President Director Nicke Widyawati and the President & CEO of CPC Corporation Taiwan who were symbolically represented by Mr. Ming-Huei Chen, Vice President of CPC Corporation, in Jakarta and Taipei. Also witnessing this signing, the Head of BKPM Bahlil Lahadalia, Deputy Minister of BUMN I Budi Gunadi Sadikin and Commissioner of Pertamina Condro Kirono.

Previously, discussions regarding this project had been initiated by Pertamina and CPC Taiwan since the end of 2018 and followed by the signing of the Framework Agreement and joint feasibility studies since mid-2019.

BKPM pays special attention to the Balongan project and is grateful that in the midst of the Covid-19 pandemic the HoA can be signed. BKPM Head Bahlil Lahadalia made sure to oversee this investment.

"This cooperation is formed over a long and deep negotiation process. Therefore, we appreciate the efforts of Pertamina and CPC. This project is a government priority. We will support up. We gave the tax holiday confirmation yesterday. I only leave it when the project is running, so that it can involve entrepreneurs in the area and also MSMEs (Micro, Small and Medium Enterprises), "Bahlil said in his remarks.

Nicke Widyawati asserted, as a national oil and gas company, Pertamina is committed to creating a strong petrochemical industry in Indonesia. So that it can meet domestic needs and help reduce imports of petrochemical products.

"This project is an important milestone to strengthen the petrochemical business portfolio so that in the next 10 years Pertamina can become a major player in the petrochemical business in the Asia Pacific region," said Nicke. It is hoped, with CPC's experience and expertise in the petrochemical field, it can help Pertamina to accelerate the development of the petrochemical business which is integrated with the RDMP and GRR megaprojects.

Nicke expressed his appreciation to CPC for the cooperation that has been established and is optimistic that it will continue as a strategic partner in the Joint Venture development project at the Balongan Petrochemical Complex. Nicke also expressed his gratitude to the Government for the support provided, including in providing investment incentives and facilities that will help complete projects in accordance with targets so that they can support national economic development.

"Going forward, Pertamina together with the Government and Taiwan's CPC will continue to strengthen cooperation to complete projects targeted to operate in 2026," concluded Nicke.

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