PT Polytama Propindo (Polytama) is strengthening the national petrochemical industry through the signing of the Front End Engineering Design (FEED) preparation contract as a stage of the production capacity development plan with the new Polypropylene Plant construction, namely the Polypropylene Plant Balongan (PPB) Project.
Polytama, a Subsidiary of PT Tuban Petrochemical Industries (TubanPetro) which is also owned by PT Pertamina (Persero), realized the PPB project with a PP production capacity of 300 KTA, This will double Polytama’s total production capacity to 600 KTA.
The PPB project is not only a business development for Polytama, but also aligns with the direction of the President of the Republic of Indonesia to fulfill the domestic demand for petrochemical products, which has a Compound Annual Growth Rate (CAGR) of 4.5% and to reduce the reliance on imported production.
The realization of the PPB project will not only strengthen Polytama’s position to support Pertamina’s downstream strategy in the petrochemical sector, but also enhance Polytama’s contribution to the development of the domestic industry. It will integrate Polytama with PT Kilang Pertamina Internasional (PT KPI) in Cilacap and Balikpapan as a supplier of Propylene raw materials.
It is known that government support is crucial to build the sustainability of the petrochemical industry, focusing on the demand for PP in the country.
Polytama’s product, PP with the masplene®, not only has superior quality and versatile industrial and consumer applications but is also recyclable and environmentally friendly. These benefits contribute to the growing and sustainable demand for PP in the market
The signing ceremony which took place at Ayana Midplaza Hotel, Jakarta was carried out by Polytama as Project Owner and 2 (two) FEED Contractors who were selected based on the Dual FEED Competition (DFC) Tender Strategy, these are the Hyundai Engineering Co, Ltd consortium, with PT Wijaya Karya (Persero) Tbk and Tecnimont consortium, with PT Tripatra Engineers and Construtors and PT Waskita Karya (Persero) Tbk.
The FEED Contract signing was carried out by Didik Susilo as President Director of Polytama, Mr. Kim Dong Joon as Chief Representative of Hyundai Engineering Indonesia Branch Office and Javier Aguirrebena Cousillas as Tecnimont Chief Representative Officer, Region VP, each representing their respective FEED Contractor consortium.
Also present at the signing ceremony were Taufik Adityawarman as President Director of PT KPI and Sukriyanto as President Director of TubanPetro as well as Polytama commissioners.
In his speech, Didik Susilo expressed his gratitude that PPB has entered the FEED preparation stage and shared his hopes for the future of this project. ” With the two selected FEED contractor consortiums on the PPB project, it is hoped that they can produce an optimal design that reflect the objectives of the PPB project itself.” He said.
The next stage after the completion of FEED is for the two consortiums to submit an Engineering Procurement and Construction (EPC) Commercial Proposal to be selected as the one who will carry out the EPC work.” Hopefully today’s activity marks the beginning of a harmonious and synergized partnership.” Didik Susilo said.
Didik also expressed his appreciation to Pertamina and PT KPI as the main Project Sponsor, as well as to Tuban Petro and PT Tuban Propilena Nusantara (TPN) for their support in the form of funding and various guidance provided, so that the PPB Project could have significant progress.
