Chemical & infrastructure solutions provider PT Chandra Asri Pacific (TPIA) has signed an Engineering, Procurement, and Construction (EPC) contract with PT Inti Karya Persada Tehnik (IKPT) to increase the production capacity of its Butene-1 (B1) and Methyl Tert-butyl Ether (MTBE) plants by more than 25 percent, a move expected to strengthen its position as the only B1 and MTBE producer in Indonesia.
The B1 and MTBE plants are located within TPIA’s integrated petrochemical complex at the Ciwandan plant in Banten province. Both facilities have been operational since 2020, playing a key role in supporting Indonesia’s petrochemical industry.
The B1 plant produces a vital raw material used as a comonomer in the production of polyethylene plastic resins, while the MTBE plant manufactures an octane booster for gasoline.
The B1 plant contributes to domestic petrochemical processing and meets local industry demand, while the MTBE plant supplies the domestic market with octane boosters, reducing dependence on imports, and also serves the export market.
Pholavit Thiebpattama, Vice President Director for Operations at Chandra Asri Group, said the project marks the continuation of a strong partnership between TPIA and IKPT.
He highlighted the success of IKPT’s involvement in the initial construction of the B1-MTBE plants, which began in 2018 and commenced operations in 2020.
“With this additional capacity, we are not only strengthening TPIA’s position as a key player in domestic petrochemical industry through organic growth, but also contributing to the growth of national economy,” Pholavit said as quoted in a statement on Tuesday, December 10, 2024.
The project is expected to be completed within 12 months and will have a significant impact on both the industry and the broader economy.
Atsushi Yoshihara, President Director of PT Inti Karya Persada Tehnik, said that the expansion of the B1 and MTBE plants is a strategic project for Chandra Asri, reinforcing its strong commitment to the Indonesian government to strengthen the domestic downstream industry.
“IKPT is committed to doing our best to ensure the success of this project by completing it on schedule and in full compliance with quality and safety standards,” Yoshihara said.
