REPUBLIKA.CO.ID, JAKARTA - State oil and gas company, Pertamina, signs an agreement with PTT Global Chemical Public Company Limited (PTTGC) to build world class petrochemical complex in Indonesia. Pertamina spends up to five billion USD for this promising project.

Executive Director of Pertamina, Karen Agustiawan, said both companies would carry out feasibility study soon. Pertamina and PTTGC also plan to form a joint company by December 2013.

The petrochemical complex - consist of Olefin and Polymer refineries - is expected to start operating by 2018, enhancing Pertamina's business on petrochemical. Agustiawan said on Monday that Pertamina planned to integrate processing and petrochemical business.

Pertamina is operating six processing units in Indonesia with the total production capacity of a million barrel crude oil per day. As the fifth biggest owners of oil refinery assets in Southeast Asia, Pertamina has a big chance to integrate the business.

CEO of PTTGC, Anon Sirisaengtaksin, said petrochemical business would significantly contribute to Indonesian economy and speed up the target of Southeast Asia to become main hub of petrochemical. "This investment is also in line with our effort to expand business in Southeast Asia," Sirisaengtaksin said.

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