Supported by the Commission 7 to Complete the TPPI Project, Pertamina is Optimistic in Fulfilling Petrochemical Products Needs Starting in 2022

Jakarta, November 30, 2020 – PT Pertamina (Persero) assures that the Revamping Aromatic and New Olefin project carried out by PT Trans-Pacific Petrochemical Indotama (TPPI) continues to run as a form of commitment of the company in supporting national independence. With the project's completion, Pertamina is optimistic that it can fulfill national Petrochemical product's needs, especially Paraxylene, which is targeted to have zero import after the Revamping Aromatic project is completed 2022.

President Director of PT Kilang Pertamina Internasional (KPI), Ignatius Tallulembang, reassures it in front of the Chairperson of Commission VII DPR RI, Sugeng Suparwoto, during his TPPI working visit in Tuban, East Java Thursday (26/11/2020).

Also accompanying the work visit were Director General of Oil and Gas of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, Secretary of SKK Migas, Murdo Gantoro, and President Director of PT TPPI, Yulian Dekri.

President Director of PT Kilang Pertamina Internasional (KPI), Ignatius Tallulembang, said that Pertamina is currently carrying out several refinery and petrochemical megaprojects. It is to follow up on government assignments both listed in the Presidential Decree, Inpres, the Minister of Energy and Mineral Resources, and direct directives from the President, particularly accelerating the implementation of oil and petrochemical refinery projects until 2024.

At TPPI, there are two development and development projects currently being carried out by Pertamina.

First, the Revamping Aromatic project will increase petrochemical production in Paraxylene from 600 thousand tons to 780 thousand tons per year, which is targeted for completion in 2022.

The second is the new Olefin Project, which includes the Naphtha Cracker construction, including downstream units with 1 million tons of Polyethylene (PE) products per year and 600 thousand tons of Polypropylene (PP) per year, which is targeted for completion in 2024.

"The Revamping Aromatic Progress has now entered the fieldwork stage, namely the OSBL EPC, while the Olefin project is in the design-build competition tender process," he said.

According to Tallulembang, the construction of the TPPI project will support the development of the domestic petrochemical industry and boost national economic growth and reduce the trade balance deficit of around USD 1.8 billion per year through a significant reduction in imports of petrochemical products.

"The petrochemical project planned by Pertamina Group, including the aromatic revamping and TPPI olefins, will periodically precede and be in line with the President's direction regarding the development of the petrochemical industry," he said.

On the occasion of the visit, Chairman of Commission VII DPR RI, Sugeng Suparwoto, gave his full support for this strategic project.

He said Commission VII DPR agreed that this Pertamina project is very strategic and feasible and proven, both from a technical, economic, or another strategic side with a huge multiplier effect, for the community's benefit.

"Commission VII DPR RI fully supports the accelerated steps carried out by Pertamina so that the TPPI project will be completed by 2024. This project must run because, among others, it is to reduce dependence on imports," he said.

Sugeng added that the purpose of this work visit was to monitor the development of the TPPI and make a breakthrough to find solutions for project completion.

Commission VII DPR also appreciates this project that will cost around IDR 50 trillion in investment. The Attorney General has closely guarded for Intelligence (Jamintel) at the Attorney General's Office and Bareskrim Polri. The process is ensured to run cleanly, transparently, and according to applicable procedures.

Inline, the Director-General of Oil and Gas of the Ministry of Energy and Mineral Resources, Tutuka Ariadji, also supports and emphasizes that Pertamina's strategy and policies are correct on fulfilling fuel but also developing petrochemical products with high selling value.

With the completion of this project, Pertamina is optimistic that soon it will become a significant player in Indonesia's Petrochemical industry.**