Masela Block Projected to Become the Petrochemical Industry Center

Jakarta, InfoPublik – Industry Minister Airlangga Hartarto stated that the Masela block in Maluku province will become the petrochemical industry center in the country.

At the location, he said, the government will build gas-based petrochemical industry with a total investment of 3.9 billion dollars, which will also support the development of methanol and its derivatives factories.

The project is expected to absorb approximately 39 thousand direct labors and as many as 370 thousand indirect labors.

"The operation of petrochemical industry in Masela block will give an added value of 2 billion US dollars and will be able to reduce import value to 1.4 billion US dollars from substitution of natural gas commodity derivatives and methanol," Minister said in the press release on Sunday (1/22). He also added that the number does not include revenue from the tax that could reach 250 million US dollars.

Furthermore, he continued, the plant operation will boost the region’s economy up to ten times with up to 31 million dollars addition to its locally generated revenue (PAD).

"Thus, the utilization of Masela gas fields for petrochemical industry is very strategic for Indonesia’s industry and economy development in the eastern region," he said.

Meanwhile, the ministry’s chemicals, textile and miscellaneous industry director general Achmad Sigit Dwiwahjono said the petrochemical upstream sector investment has not been established for more than 15 years, so it is necessary to drive the development of this strategic sector.

"In this sector, the low price of gas is the key to attract investment in the upstream petrochemical industry," he explained.

He expects that the decreasing of gas prices will be followed by the revitalisation in gas industry to increase the capacity.

"The competitive gas price will encourage those unproductive companies  to operate again and restore the decreasing capacity industrial production," he said.

He also stated that the low gas price for industry will drive region’s development and will become an instrument of economic equality.

"It is in accordance with President Joko Widodo’s directive which is to improve the Indonesia’s ease of doing business rank, from rangking 109 to 40," he explained.

To achieve these targets, he added, the next step is through electricity and gas provision. (Translator: Rina Alexandra)