Minister of Investment/ Head of Investment Coordinating Board (BKPM) Rosan P. Roeslani appreciates the commitment of PT Nippon Shokubai Indonesia to develop petrochemical industry in Indonesia, starting the fourth phase construction of its plant in Cilegon, Banten, next year.
“I aprreciate Nippon Shokubai that has invested in Indonesia since 1996. I come here and see the construction of the fourth phase of its plant with extension value of Rp 1.69 trilliuon or US$ 110 million,” Rosan said during a visit to PT Nippon Shokubai Indonesia facility in Cilegon on Wednesday, September 12, 2024.
He maintained that the government protects investment in Indonesia − both new and existing ones.
According to Ministry of Investment/BKPM data, PT Nippon Shokubai Indonesia began its commercial production in 1999 with first facility. It continued with the second facility which started the commercial operation in 2014, and the third facility in 2023.
Rosan expressed hope that the plant extension will not only benefit the company, but also give positive impact for the people living around the factory.
“The fourth phase construction will begin in 2025 and hopefully will start the production in 2027 . This factory will increase the role of and human resources in Cilegon. The government has vocational program and training to support this,” he said.
The fourth facility will focus on production of the first Superabsorbent Polymer (SAP) in Indonesia with production capacity of 50,000 tons per year. The SAP production is important in the manufacture industry, mainly in the production of diapers, sanitary napkins, and other products that need high absorptive capacity.
“As long as it is in good and right legal corridor, we will support and fully facilitate Nippon Shokubai investment. The government has also Super Tax Deduction program that they can get tax incentive until 200 percent,” Rosan said.
This visit exhibits government’s commitment to encourage foreign investment that give added value for national industry and create jobs for the people.
Japan’s total investment in Indonesia in the last five year has reached more than US$19 billion, with automotive, power and gas, housing, and industrial estates as the main sectors.
