Peni considers alliance with Chandra Asri<\/p>\n
JAKARTA (JP): Petrochemical producer PT Petrokimia Nusantara
\nInterindo (PT Peni) is considering creating an alliance with PT
\nChandra Asri to strengthen the local polyethylene industry in
\norder to compete with international players.<\/p>\n
Peni's president Robert M. Genovese said the alliance was
\nnecessary ahead of the implementation of the ASEAN Free Trade
\nArea (AFTA) which would oblige all ASEAN member countries,
\nincluding Indonesia, to cut import duty on polyethylene products
\nto 5 percent.<\/p>\n
Indonesia today imposes a 10 percent tariff on the product.<\/p>\n
Other country members of the Association of South East Asian
\nNations are Malaysia, Singapore, the Philippines, Thailand,
\nCambodia, Vietnam, Myanmar, Laos and Brunei.<\/p>\n
He said the decrease in the import duty would result in a wave
\nof polyethylene imports into the country.<\/p>\n
\"With the alliance, we want to raise our international
\ncompetitiveness as we do not want to become casualty of free
\ntrade,\" Genovese said on Thursday.<\/p>\n
Genovese said the alliance would cover the areas of
\npolyethylene manufacturing, marketing and ethylene distribution.<\/p>\n
Genovese said that Peni and Chandra Asri had submitted the
\nproposal for the alliance to the Ministry of Industry and Trade
\nas well as the Indonesian Bank Restructuring Agency (IBRA).<\/p>\n
Chandra Asri, whose founding shareholders include former
\nPresident Soeharto's second son Bambang Trihatmodjo and tycoon
\nPrajogo Pangestu, had been taken over by IBRA following its
\nowners's failure to repay Rp 3 trillion (US$348 million) in debts
\nowed to state banks.<\/p>\n
\"We hope they (the ministry and IBRA) will give their approval
\nbefore the AFTA agreement comes into effect,\" he told reporters
\non the sidelines of the signing ceremony of the agreement between
\nPeni and logistics service provider PT TNT Logistics Indonesia on
\nwarehousing and transportation management.<\/p>\n
Genovese said Peni fulfills 30 percent of the country's
\npolyethylene market demand which stands at 700,000 tons a year,
\nwhile Chandra Asri takes 40 percent. The remaining 30 percent
\nmarket demand is filled by imported products.<\/p>\n
TNT Logistics' president Colin Moran said under the five year
\ncontract, his company would handle the receiving and handling of
\nPeni's products after production, the management of the 300,000
\nsquare meters warehouse complex, palletization, inventory
\ncontrol, distribution and transportation management.<\/p>\n
Genovese said by teaming up with TNT logistics, PT Peni
\nexpected to boost its cost efficiency, strengthen reliability,
\nand improve services to its customers.<\/p>\n
PT Peni is owned by British energy giant BP (75 percent),
\nJapanese firms Sumitomo (12.5 percent), and Mitsui (12.5
\npercent). (dmr)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/peni-considers-alliance-with-chandra-asri-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}