REPUBLIKA.CO.ID, JAKARTA -- State owned oil and gas company, PT Pertamina and PTT Global Chemical Public Company Limited (PTTGC) starts a feasibility study on development of world class petrochemical complex in Indonesia. It is targeted to operate comercially in 2018.

Vice President of Corporate Communication in Pertamina, Ali Mundakir said that Pertamina and Thailand's leading petrochemical producers would complete the study in second quarter of 2014. Both companies will also form a joint venture company to distribute polymer products in Indonesia.

"Pertamina and PTTGC have completed a survey of Indonesia's polymer market through distribution and marketing activities," Mundakir said recently.

Both companies have decided an initial configuration and technical study on investment scope. This joint venture is important as demand for domestic petrochemical products increasing. Indonesia's petrochemical market value is estimated to reach 30 billion USD in 2018. Both companies target 30 percent market share in the country.

Petrochemical production in Indonesia is still not able to meet needs of downstream industry. This country always imports it with value of five billion USD per year.

President Director of Pertamina, Karen Agustiawan said that this project represented a milestone for business development and Pertamina's strategy. The national company prepares the best investment conditions for further examination, such as project location to provide economic competitiveness.

"We are excited to work with PTTGC, which has comprehensive experience and achieved so many successes in chemical business. Expertise and capabilities between two companies are the most valuable thing in this cooperation," Agustiawan said.

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