Ferrostaal, the German firm that provides industrial services in plant construction and engineering, would be investing US$ 2 billion for constructing petrochemical plant in Indonesian province of West Papua, a statement from the Indonesian Industry Ministry said.
According to the statement, Indonesian President Susilo Bambang Yudhoyono, who visited Germany together with Ministry’s Director General Panggah Susanto and Chairman of the Investment Board (BKPM) Chatib Basri, signed a letter of intent with Ferrostaal Executive Klaus Lesker in this regard.
The project involving establishment of a petrochemical plant and other ancillary facilities, to facilitate production of methanol, propylene and polypropylene from natural gas, is likely to conclude in 2019, the statement said.
Noting that the project would necessitate an investment of US$ 2 billion, the statement added that the Indonesian Government has consented to provide gas supply to the Ferrostaal plants.
Once the petrochemical plant becomes fully functional, it would help Indonesia to cut its petrochemical imports by up to US$ 600 million, Mr. Lesker was cited as saying.
Once complete, the plant would have an annual capacity to produce 400,000 tons of polypropylene.
The project would involve high-technology transfer and would generate around 3,000 direct and indirect job opportunities, he added.