In this brief, Mandala breaks down the overview of petrochemical Industry in Indonesia, its potential impact on GDP, a National Strategic Project (PSN), and other new ethylene project.
As Indonesia aims to avert premature deindustrialization, petrochemicals present a proven pathway to industrial upgrading - just as seen in Japan and South Korea.
Considering its downstreaming potential, the government has already placed the sector on its priority list, with several projects designated as National Strategic Projects (PSN).
However, rising feedstock costs, particularly for oil and gas, amid the ongoing U.S.-Israeli invasion of Iran highlight a key reality: downstream ambitions must start with securing stable upstream supply.
The purpose of this document is to provide general information about Recent Development in Indonesia’s Petrochemical Industry. The contents of this document should not be construed as specific recommendations or advice. For questions about the contents of this document, please contact Mandala Consulting. The information in this article is accurate as of the publication date. However, due to the rapidly changing nature of the law in Indonesia, the accuracy of the information will be limited.
