Consumption Production Producer Xylene Indonesia


Prospect Industry And Market of XYLENE in Indonesia
Bizteka Business Journal-053/March/2020

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Prospect Industry and Market of XYLENE In Indonesia
The chemical industry in the country is now experiencing a significant development. The downstream chemical industry sector complains about the shortage of raw materials, which are still largely dependent on Imports. Though Indonesia has great potential in the oil and gas sector.

This prompted the government to accelerate the development of the petrochemical industry, especially Xylene chemicals, by acquiring PT Trans Pacific Petrochemical Indotama (TPPI) in an effort to fully control the TPPI refinery, as well as asking Pertamina to activate the TPPI aromatic refinery.

Pertamina took the same strategic step by the government by carrying out a corporate action to purchase Tuban Petro shares worth Rp 3,2 trillion. This decision was made so that in 2020 aromatic refineries can be optimized, and product capacity capabilities can be increased. Pertamina is also building a new refinery, the New Grass Root Refinery (NGRR) of Tuban Refinery. The Tuban refinery will be able to produce petrochemicals such as 1.205 ktpa polypropylene, 1.317 ktpa paraxylene and 750 ktpa polyethylene.

The question is whether the plan can be realized because it requires no small amount even though the market opportunity in the petrochemical business is currently quite large at around Rp 40 – 50 trillion per year.

This prompted BIZTEKA to further discuss the Industry and Marketing Prospects for Xylene Chemicals in Indonesia. This report also discusses the development of Xylene supply and demand in the local market, prices, consumption projections and future market opportunities.

This report was compiled based on the results of interviews with producers and industrial users as a primary source. Whereas secondary data was obtained from relevant government agencies such as the Ministry of Industry, the Ministry of Trade, the Central Statistics Agency, the Investment Coordinating Board, and the data banks at Bizteka-CCI. (List Content)

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