INDONESIA – Plastic manufacturers in Indonesia will soon be able to reduce their reliance on imported raw materials, according to local industry association Indonesian Olefin, Aromatic and Plastic Industry Association (Inaplas).
Budi Susanto Sadiman, deputy chairman of Inaplas, said Indonesian olefin demand will soon be fulfilled by four production facilities - two built in Kalimantan, one in Sumatra and one in Papua – which are expected to complete construction by 2022.
When complete, the plants are expected to meet a total annual production capacity of 2 million tons of olefin.
Budi did not specify which companies had invested in the projects.
In 2015, Indonesia’s market demand for plastics was 4.68 million tons; this is estimated to increase to 4.75 million tons this year, according to Inaplas.
The Jakarta Post reports the figures are much higher than the national combined annual production capacity of 2.9 million tons per year.
According to Budi, the main reason for the country’s low plastic production is the limited supply of raw materials: “There is a huge demand gap of around 1.7 million tons of plastics in our country. We want to ensure that import is the last resort [to fulfil the demand].”
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