Bakrie tightens grip
\nin petrochemicals<\/p>\n
CILEGON, West Java: PT Bakrie Kasei Corporation, an
\nIndonesian-Japanese joint venture, yesterday started the
\nexpansion of its purified terephthalic acid (PTA) mill and the
\nconstruction of a polyethylene terephthalate (PET) resin plant.<\/p>\n
Government confident and tycoon Aburizal Bakrie, chief
\ncommissioner of the company, told newsmen here that the expansion
\nof the PTA plant and the establishment of the new PET plant will
\nneed a total investment of US$282 million.<\/p>\n
The expansion project, that will cost $202 million, will
\ndouble the company's PTA production capacity from 250,000 tons
\nper annum to 500,000 tons in 1996.<\/p>\n
PTA is a raw material for the production of polyester fiber
\nand tire cords.<\/p>\n
The joint venture established the PTA plant in 1992 with an
\ninvestment of $329 million.<\/p>\n
\"We will become the biggest PTA producer in Southeast Asia
\nafter the completion of the expansion project,\" said Aburizal,
\nwho is fondly referred to as \"Ical\".<\/p>\n
Aburizal, also chairman of the Indonesian Chamber of Commerce
\nand Industry (Kadin), said the PTA industry does not receive any
\nprotection from the government.<\/p>\n
Besides the joint venture, PTA is also produced by the state
\noil company Pertamina at its 225,000-ton-capacity plant in
\nPalembang, South Sumatra.<\/p>\n
Aburizal said he is optimistic that the country's annual
\ndemand for PTA will steadily increase from 335,500 tons estimated
\nfor this year to 375,000 tons next year and to one million tons
\nby the year 2000.<\/p>\n
The price of PTA increased by 44.5 percent to $657 per ton
\nlast year.<\/p>\n
The PTA plant is 56 percent owned by Mitsubishi Kasei
\nCorporation of Japan, 15 percent by Bakrie & Brothers, 10 percent
\nby the International Finance Corporation, an affiliate of the
\nWorld Bank, and 19 percent by Japan Asia Investment Company.<\/p>\n
PET<\/p>\n
Aburizal said the PET resin plant, that will be built within
\nfour years with an investment of $80 million, will have a
\ndesigned capacity of 40,000 tons per year.<\/p>\n
PET resin is a raw material for the production of plastic
\npackaging and textile fibers.<\/p>\n
Aburizal said his PET resin project has good prospects because
\nit will be the first of its kind in Indonesia.<\/p>\n
He said demand for PET resin was estimated at 50,440 tons last
\nyear.<\/p>\n
The PET resin project is equally owned by Mitsubishi Kasei,
\nBakrie & Brothers, Toyobo Corporation of Japan, the International
\nFinance Corporation and Japan Asia Investment.<\/p>\n
Aburizal said the joint venture is expected to recover the
\ncosts of expansion and new projects within seven years. (04)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/bakrie-tightens-grip-1447899208",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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