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Kamis, 12 September 2024

PT Nippon Shokubai Indonesia Allocates IDR 1.69 Trillion for Fourth Phase Construction in 2025

Cilegon, September 12, 2024 – Minister of Investment and Downstream Industry/Head of the Indonesia Investment Coordinating Board (BKPM), Rosan Roeslani, commended the commitment of PT Nippon Shokubai Indonesia in developing the petrochemical industry in the country. In 2025, the company will commence the construction of its fourth phase in Cilegon, which is expected to become operational by 2027.

"I appreciate Nippon Shokubai, which has been investing in Indonesia since 1996. I am now witnessing the fourth phase of development, with an expansion investment value of approximately IDR 1.69 trillion (USD 110 million)," Rosan stated during his visit to PT Nippon Shokubai Indonesia's facilities in Cilegon, Banten Province, to review the progress of the Japanese company's investment in Indonesia.


He emphasized that the Indonesian government is committed to safeguarding both new and existing investments in the country.


"This is done to serve as a word-of-mouth marketing tool for other investors to consider investing in Indonesia," Rosan added.


Historical Commercialization of Nippon Shokubai Indonesia

Data from the Ministry of Investment and Downstream Industry/BKPM indicates that PT Nippon Shokubai Indonesia began its first commercial production phase in 1999. Since then, the company has continually expanded, with the second phase starting commercial operations in 2014 and the third phase in 2023.


This expansion, Rosan continued, is expected to not only benefit the company but also positively impact the surrounding community.


"The fourth phase is planned to begin construction in 2025 and is expected to start production by 2027. This will also enhance the role and development of human resources in Cilegon, enabling growth and progress. The government has vocational and training programs to support this effort," Rosan added.


Previously, PT Nippon Shokubai Indonesia announced its plan for a fourth industrial expansion with an investment of approximately IDR 1.69 trillion (USD 110 million). The new facility is set to begin construction in 2025 and is projected to commence commercial production in 2027.

The fourth-phase facility will focus on producing Indonesia's first Superabsorbent Polymer (SAP), with an annual production capacity of 50,000 tons. SAP is a vital material in the manufacturing of products such as diapers, sanitary pads, and other items requiring high absorption capabilities.


"As long as everything adheres to proper legal frameworks, we will fully support and facilitate Nippon Shokubai's investment. The government also has a Super Tax Deduction program, offering tax incentives of up to 200%," Rosan further explained.


This visit reaffirms the government's commitment to encouraging foreign investments that add value to the national industry and create jobs for the community.


Over the past five years, total Japanese investment in Indonesia has exceeded USD 19 billion, with key sectors including the automotive industry, electricity and gas, as well as housing and industrial estates.


PT Nippon Shokubai Indonesia serves as a successful example of how Japanese companies continue to strengthen their presence in Indonesia through sustainable investments.


For further information, please contact:

Ahmad Faisal Suralaga

Head of Public Relations and Information Services Bureau

Ministry of Investment and Downstream Industry/BKPM

E-mail: humas@bkpm.go.id

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