Japanese Company Expands Petrochemical Operations in Indonesia with New USD 110 Million Facility

Oct 2024

Nippon Shokubai Indonesia is moving forward with plans to expand its petrochemical operations in Cilegon, Banten, by constructing a fourth plant phase, set to begin in 2025. The new facility will involve an investment of approximately IDR 1.69 trillion (USD 110 million) and will focus on the production of Superabsorbent Polymer (SAP), a key material used in products like diapers, sanitary napkins, and other absorbent items. The facility is expected to achieve an annual production capacity of 50,000 tons when it begins operations in 2027.

The company has played a notable role in Indonesia’s petrochemical sector since 1996, launching its first commercial production in 1999. It expanded with additional facilities in 2014 and 2023, making this new construction phase part of a continuing investment strategy aimed at meeting increasing market demand.

During a recent visit to the facility, Investment Minister Rosan P. Roeslani underscored the government’s support for Nippon Shokubai’s ongoing efforts, citing initiatives like vocational programs to enhance local workforce skills and the availability of tax incentives, such as the Super Tax Deduction. The government provides a super tax deduction incentive of up to 200% for companies that invest in the development of vocational education. The minister’s visit also emphasized Indonesia’s broader approach to attracting foreign investment, with Japan having invested over USD 19 billion across various sectors in the past five years.

(Source: Indonesia Business Post)

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