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Jakarta Post

Tuban Petro ready to expand production capacity following government bailout

  • News Desk

    The Jakarta Post

PREMIUM
Jakarta   /   Mon, October 28, 2019   /  03:30 pm
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The production facilities of PT Trans Pacific Petrochemical Indotama, a subsidiary of PT Tuban Petrochemical Industries.(Antara Photo/Aguk Sudarmojo)

Debt laden PT Tuban Petrochemical Industries (Tuban Petro) will go ahead with its expansion after the government finally agreed to bail out the East Java-based propylene producer. Tuban Petro chief executive officer Sukriyanto said the company planned to build new factories and improve existing ones in an effort to strengthen the company’s finances in the future. The first step will be to increase the production capacity of propylene in one of Tuban Petro’s subsidiaries, PT Polytama Propindo. Polytama is projected to produce 240,000 metric tons of propylene by the end of this year. With the production expansion, Polytama is predicted to be able to produce up to 350,000 metric tons in 2020. “The total cost of increasing the production capacity of propylene in Polytama is around US$17.5 million. We will also start operating our first expanded production line l...