Chandra Asri is on its own<\/p>\n
JAKARTA (JP): The government will give neither tariff
\nprotection, tax incentives nor regulatory protection to the
\ncountry's first olefins plant, the Chandra Asri Petrochemical
\nCenter, Minister of Industry Tunky Ariwibowo announced yesterday.<\/p>\n
\"As already known, import tariffs on chemicals similar to
\nChandra Asri's products remain at zero percent, as stated in the
\nrevised tariff book issued on May 23,\" Tunky said after reporting
\nto President Soeharto at the Merdeka Palace here.<\/p>\n
Soeharto is scheduled to inaugurate PT Chandra Asri
\nPetrochemical Center's olefin plant in Anyer, West Java, on
\nSaturday.<\/p>\n
Asked whether it was possible that Chandra Asri would be given
\ntax incentives or supporting trade regulations from the
\ngovernment, Tunky replied: \"No.\"<\/p>\n
Last year, the company asked for tariff protection against
\nimported olefin products. The call sparked vigorous public debate
\ninvolving economists, legislators, company executives and
\nministers. State Minister of Investment Sanyoto Sastrowardoyo,
\nfor instance, supported the request, while Minister of Finance
\nMar'ie Muhammad came out against it.<\/p>\n
The company's chief executive officer, Peter F. Gontha, said
\nlast week that as his company's products are not protected, they
\nare vulnerable to dumping on the part of foreign producers.<\/p>\n
Minister Tunky promised yesterday that the government will
\nintervene if the company faces unfair competition, including
\ndumping practices, from foreign producers.<\/p>\n
\"However, we must prove it, if dumping is indeed being carried
\nout... Where there are unfair trade practices we will certainly
\nintervene,\" Tunky said.<\/p>\n
Chandra Asri is jointly owned by the Napan, Barito Pacific and
\nBimantara groups -- all believed to wield strong political clout
\n-- and Japan's Marubeni Corp.<\/p>\n
The company's olefin plant has the ability to convert about
\n1.5 million tons of naphtha into 550,000 tons of ethylene,
\n243,000 tons of propylene and 216,000 tons of pyrolysis gasoline.<\/p>\n
Chandra Asri's propylene is to consumed by PT Tri Polyta
\nIndonesia's polypropylene plants, which are also located in
\nAnyer. Tri Polyta is a public company whose shares are listed on
\nthe Nasdaq exchange in New York.<\/p>\n
Chandra Asri's pyrolysis gasoline is to be exported, mainly to
\nJapan.<\/p>\n
Chandra Asri itself will use some 300,000 tons of its annual
\nethylene output for its integrated polyethylene resins plants,
\nwhile the rest will be available for local companies.<\/p>\n
On Monday, Chandra Asri clinched its second long-term ethylene
\noff-take deal with PT Styrindo Mono Indonesia, a polystyrene and
\nsynthetic rubber manufacturer. Under the deal, Chandra Asri is
\nrequired to supply Styrindo with at least 15,000 metric tons per
\nannum during the next five years at prices discounted from
\nprevailing international prices for ethylene.<\/p>\n
Last week, Chandra Asri announced its first long-term sale to
\nPT Yasa Ganesha, an ethylene glycol manufacturer, under a five-
\nyear contract for on annual off-take of 24,000 metric tons of
\nethylene.<\/p>\n
Late last year Sanyoto said that Indonesia's downstream
\nchemical plants and dozens of middlestream plants imported olefin
\nproducts worth between $1.2 billion and $1.9 billion each year.<\/p>\n
Tunky said yesterday that, with the operation of Chandra
\nAsri's olefin plant, the country would save between US$600
\nmillion and $700 million per annum in olefin products not
\nimported.<\/p>\n
At the same briefing to journalists, Tunky said that President
\nSoeharto will be the keynote speaker at the World Economic Forum
\nthis year, which will be held in Singapore from Sept. 21 to Sept.
\n27.<\/p>\n
He said the forum, which will be attended by over 500 top
\nexecutives from large companies worldwide, will serve as an
\nexcellent venue to promote Indonesia as \"a good place to do
\nbusiness.\" (rid)<\/p>\n
Editorial -- Page 4<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/chandra-asri-is-on-its-own-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }