Jokowi Visits the TPPI Tuban Refinery, Developed as National Petrochemical Industry

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NUSADAILY.COM – TUBAN – President Joko Widodo (Jokowi) inspected the PT Trans Pacific Petrochemical Indotama (TPPI) refinery in Tuban Regency, East Java, Saturday (12/21/2019).

During his visit to the TPPI refinery, which was controlled by Pertamina, Jokowi was accompanied by State Minister Pratikno, Minister of BUMN Erick Thohir, East Java Governor Khofifah Indar Parawansa, Regent of Tuban H. Fathul Huda and others.

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While on location, Jokowi’s arrival was welcomed by Pertamina officials, Chief Commissioner Basuki Tjahja Purnama alias Ahok and Pertamina’s President Director Nicke Widyawati.

President Jokowi and his entourage then reviewed the TPPI area which will be developed into a national petrochemical industry in Tuban.

Pertamina is ready to develop the PT Trans Pacific Petrochemical Indotama (TPPI) refinery in Tuban Regency, East Java, to become a center for the petrochemical industry integrated with the national refinery.

Nicke Widyawati told a number of journalists that the petrochemical business market opportunity in Indonesia was around Rp 40-50 trillion per year. In addition, the petrochemical business has a higher margin than BBM.

“The construction of the Petrochemical industrial complex will further ensure the sustainability of the company’s business, because it is in line with future business trends,” Nicke said.

The development of the Petrochemical industry, continued Nicke, will also be more efficient because it is integrated with refineries, so that petrochemical by-products can be reused by refineries, both for refinery fuel itself and can become fuel products.

“Supporting infrastructure and utilities can also be utilized together by reducing energy costs by up to 10% and personnel costs down by 10% so that operational costs down to 15%,” added Nicke.

The move to integrate the TPPI refinery to develop the petrochemical industry was carried out by Pertamina by carrying out a corporate action to purchase the B Tuban Petro series B shares, which is the holding company of TPPI, valued at Rp 3.1 trillion, so that Pertamina currently controls a majority of 51 percent shares.

“This corporate action is intended to develop the national petrochemical industry which will later have an impact on the development of its derivative industry in the country,” explained Nicke.

Nicke explained that the restructuring of Tuban Petro was also part of the Pertamina refinery which prioritized the flexibility aspect, where the refinery mode could switch to either petrochemical or mogas modes. This makes the refinery production can adjust to the demand at the time of operation.

In addition, with the integrated supply of raw materials between one refinery and other refineries, it is hoped that it can also improve efficiency in terms of both operational and capital expenditures, so as to achieve maximum profitability. With a maximum profit level, Pertamina refinery projects will be able to become sustainable businesses in the future.

“So it is clear that our ongoing refinery project will become a sustainable business because it can adapt to market needs and be supported by integration between fellow refineries and other Pertamina infrastructure,” Nicke said.

Pertamina itself will develop the construction of a new factory and continue the construction of the olefin and polyolefin complex in the TPPI refinery area in Tuban. With this development, TPPI will become an integrated petrochemical complex producing aromatic and olefin products.

At the same time, through the RDMP and GRR projects, Pertamina is also building a Tuban refinery with an investment of US $ 16 billion, which will later have a petrochemical production facility with 1,200 ktpa of polypropylene products, 1,300 ktpa of paraxylene and 750 ktpa of polyethylene.

“The development of the national petrochemical industry will help strengthen the trade balance, save foreign exchange and reduce imports of raw materials and petrochemical products,” concluded Nicke.

In his statement at the same place, Jokowi emphasized that the refinery is the largest in Indonesia and produces a variety of aromatic products.

“Which can produce aromatic products, both paracillin, autocillin, gasoline, toluene, ephiaromatic, and also producing fuel, premium, pertamax, LPG, diesel, kerosene, this can be for everyone,” Jokowi said in front of the media. (hda)

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