S.Korea's Honam to Invest Us$5 Billion In Indonesia's Petrochemical Plant
Dow Jones Newswires, 23/04/2012
South Korea's Honam Petrochemical Corporation is ready to build a petrochemical plant in Cilegon, Banten province, at a cost of US$4 billion-US$5 billion, Indonesia's ANTARA news agency reported, citing an investment official statement.
"Honam has explored the possibility of investment in Indonesia and chosen Cilegon as the plant's location," Azhar Lubis, deputy for investment control and realisation to the chief of the Investment Coordinating Board (BKPM), said here on Monday.
He noted that Homan would cooperate with PT Titan Kimia Nusantara Tbk as a local partner in building the plant on 60 hectares of land.
The land may be located at PT Krakatau Industrial Estate Cilegon (KIEC), a subsidiary of state steel manufacturer PT Krakatau Steel.
The investment plan, however, could not yet be completed since Homan has not reached an agreement with Krakatau Steel on the use of the land, he said.
"The issue of the land to be used as the location for the plant must be settled. We hope State Enterprises Minister, Dahland Iskan (as the proxy of Krakatau Steel shares) would help to settle the land problem," Azhar said.
Earlier, Kim Gyo Hyun, senior managing director of Honam Petrochemical Corporation, said if the land issue could be settled soon, the construction of the plant would begin in the first quarter of 2013 and completed in the first half of 2016.
He said another South Korean company, Samatan Corp, had expressed their readiness to invest in Indonesia, he said.