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Indonesia to Become Self-Sufficient in Petchem Imports by 2027, Envoy Says

Indonesia to Become Self-Sufficient in Petchem Imports by 2027, Envoy Says
(Monday, August 5, 2024) 12:18

JAKARTA (NIPNA)- The Iranian Ambassador to Indonesia, Mohammad Boroujerdi, announced that Indonesia is projected to become self-sufficient in petrochemical imports by 2027.

Speaking at the “International Cooperation and Relations in Petrochemicals” panel during the 15th Iran Petrochemical Conference (IPF), Boroujerdi highlighted Indonesia’s significant investments in the petrochemical sector.

Boroujerdi noted that some of Indonesia’s petrochemical projects are among the largest in East and Southeast Asia. He emphasized the importance of Iran planning to benefit from Indonesia’s dynamic economy, which is expected to become one of the top 10 global economies by 2040-2045, according to the IMF and World Bank.

The ambassador acknowledged that while U.S. sanctions have impacted Iran-Indonesia economic relations since 2016, the petrochemical sector has continued to see fluctuations in trade. Indonesia has attracted approximately $30 billion in investments for its petrochemical industry and remains both an exporter and importer of petrochemical products, with around $20 billion in imports.

Boroujerdi highlighted that Indonesia imports 17 petrochemical products, including ethylene and propylene, from countries such as Iran, China, Singapore, Malaysia, Italy, Thailand, and the UAE. He mentioned that Indonesia imported 770,000 tons of polyethylene and 1.1 million tons of polypropylene last year, with the industry growing at an average rate of 7-8%. It is projected that propylene production alone will increase by an average of 3.5% annually until 2045.

Boroujerdi concluded by stressing the strategic importance of Iran enhancing its economic ties with Indonesia and leveraging the opportunities presented by Indonesia’s growing petrochemical industry.

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