Indonesia expects to end import of petrochemical products from 2027

Indonesia’s Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan speaks at 2023 Mandiri Investment Forum (Photo: antaranews)

Jakarta (VNA) - Indonesia’s Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan has expressed his hope that the largest economy of Southeast Asia will not import petrochemical products from 2027 thanks to petrochemical industry development in North Kalimantan’s green industrial area.

Speaking at the “2023 Mandiri Investment Forum” on February 1, he said that the country plans to build the largest petrochemical industry at the Tanah Kuning Kalimantan Industrial Park Indonesia (KIPI) in North Kalimantan province, which will be turned into the world’s biggest integrated industrial area.

The total investment potential of the industrial area has reached 132 billion USD. The figure includes the investment potential for developing hydropower plants and solar panels with a total capacity of 10,000 MW each as well as a gas facility with a total capacity of 2.9 trillion cubic feet (TCF).

In addition, bauxite smelters will be constructed massively at the KIPI in 2023–2024, following the decision of the Indonesian government to ban bauxite ore exports.

On December 21, 2022, President Widodo announced that Indonesia will stop exporting bauxite ore starting June 2023 to boost the domestic bauxite processing and refining industry./.

VNA