Indochemical 539 Prospects For High Density Polyethylene Plastic Hdpe

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INDOCHEMICAL
Issue No. 539
October 2016
LIST OF CONTENT
Page
INDOCHEMENTATOR
1. TAX AMNESTY PROGRAM PHASE 1 ASSESSED SUCCESSFUL
SPECIAL REPORT
BUSINESS PROFILE
4. MARKET PROSPECTS FOR HIGH-DENSITY POLYETHYLENE PLASTIC (HDPE)

IN INDONESIA
<> Introduction <> Product Description <> Industry of Polyethylene (HDPE) in
Indonesia <> Profile of Main Players of Polyethylene <> World-Scale Polyethylene
Plant To Be Built in Indonesia <> Polyethylene Production Continue to Increase,
2009-2015 <> Government Regulation <> Supply of Polyethylene <>
Consumption of Polyethylene <> Houseware Industry from PE Continue to
Increase <> Demand on Plastic Bottle Increases Significantly Each Year <> Cable
and HDPE Pipe Industries <> HDPE Pipe Industry <> Total Consumption of
Polyethylene (PE) <> Projection of Polyethylene (PE) Demand <> Conclusion <>
COMPANY PROFILE
39. PT. CHANDRA ASRI PETROCHEMICAL Tbk
NEWS & ANALYSIS
INORGANIC CHEMICAL
44. Government Push The Use Of Organic Fertilizers
PHARMACY AND COSMETIC

47. The Government Continues To Encourage Cosmetics And National Herbal
Industry
Prepared by PT. CAPRICORN Indonesia Consult Inc.

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CEMENT, CERAMICS AND GLASS

50. LED Lighting Industry Continues To Be Developed
PULP AND PAPPER

53. Graphics Industry Continues To Grow
FIBER AND THREAD

56. Optical Fiber Demand Continues To Rise
INDUSTRIAL GAS
58. Government Strive To Give Gas Incentives To Factories In Industrial Area
OTHER CHEMICALS
60. Farmers Asked The Government To Stop The Import Of Raw Sugar
63. Local Steel Industry Calls For The Attention From The Government
65. Indonesia Will Build The Largest Synthetic Rubber Plant In Asia
67. Levy Is Too High, Indonesia CPO Exports Plunged
68. Anti-Dumping Steel Wire Rods Disadvantaged The Industry
71. This Year The Target Of Plastic Consumption Is Expected To Fall
BRIEFF NEWS
73. The Auction Of 14 Oil And Gas Blocks Is Still Slow Anthusiasts
73. Working On Masela, Inpex And Shell Are Given New Incentives
74. SEMEN BATURAJA Returned To Handle The Project in Sumatra
74. APP Entered as 17 Sustainable Companies
APPENDIX
1L. Development of Chemical Materials Export in Indonesia, Jan December 2015

9L. Time Deposit Leading Banks in Jakarta Rp/US$
9L. Middle Rate Foreign Currencies in Jakarta
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Copying Allowed By Stating Source

INDOCHEMICAL - 1
No. 539 October 2016
INDOCHEMENTATOR
TAX AMNESTY PROGRAM PHASE 1 ASSESSED SUCCESSFUL
The first phase of Indonesian tax amnesty program ends on Friday, September 30th.
Contrary to previous estimates, the first phase of this program can be considered a
success. The Indonesian government can collect more than Rp 97,200,000,000,000.-
(approximately USD7.5 billion) in additional tax revenue, or 58.9 percent of the
program targets nine months (Rp 165 trillion). Tax amnesty program in Indonesia,
which runs until March 31, 2017, divided into three stages. In the first stage the
government offers the most attractive tax rates for taxpayers whose stated and / or
repatriation of assets which were previously reported by them.
In addition to the success of tax revenue generated by tax amnesty program, a total
declaration of assets in the first phase of the program was also considered a success.
Declaration of assets reached Rp 3,603.6 trillion (approx. USD 277 billion), or 90.1
percent of the government's target (Rp 4,000 trillion). This success is supported by a
giant group of entrepreneurs in Indonesia like Anthoni Salim (Indofood Group) and
James Riady (Lippo Group) who report their assets and set a good example to follow.
Most of the asset declaration (approximately Rp 2,517.6 trillion) involving domestic
assets while the rest is offshore assets.
However, repatriation of offshore funds only reached Rp 136,500,000,000,000

(approximately USD10.5 billion), or 13.6 percent of the overall target (Rp 1,000 trillion)
at the end of the first stage. It was a bit disappointing but still considered
unreasonable given that taxpayers prefer to enjoy more attractive tax rates abroad. In
addition, the government set a requirement that repatriated funds should remain in
Indonesia for at least three years on a particular investment instrument. For many
taxpayers this is a less attractive option.
Tax Amnesty Program in Indonesia (Tax Rates)
Decription Period Tax Rates

Declaration of Fund 1 July 30 September 2016 4%
1 October 31 December 2016 6%
1 January 31 March 2017 10%
Repatriating of Fund 1 July 30 September 2016 2%
1 October 31 December 2016 3%
1 January 31 March 2017 5%
Source: Ministry of Finance

INDOCHEMICAL - 2
Reception of Tax Amnesty
Target Per 30 September 2016 Received

(Rp. Trillion) (Rp. Trillion
State Income 165 97.2 58.9%
Declaration of Fund 4,000 3,603.6 90.1%
Repatriating of Fund 1,000 136.5 13.6%
Source: Directorate General of Taxes
TAX AMNESTY BEAT SINGAPORE CAPITAL MARKET
Tax amnesty program have an impact on the capital market in Indonesia. This is
evident from the increasing daily transaction value of shares in the Indonesian Stock
Exchange (BEI).
BEI President Tito Sulistio explained daily transaction value of stocks increased quite
dramatically since the passage of Tax Amnesty Program. Tito said daily transactions
rose significantly from previously around Rp 5.5 trillion per day to Rp 8 trillion per day
and this may be linked to Tax Amnesty program. Tito claimed this daily transaction is
four times larger than Singapore, two times larger from Malaysia, and six times larger
from the Philippines.
Tito also explained there was interest thing in the capital market of Singapore. There,
as many as 250 listed companies are foreign companies. Unfortunately, as many as
100 companies are in trouble. Under these conditions, the Indonesian capital market
will surpass Singapore. Moreover, the Indonesian capital market continues to show
growth from the growth side of new companies.
"And the last 5 years the amount of our listed grew 26 percent a year. Malaysia minus
5 percent, Singapore minus 1. They have many delisting rather than listing in three
years, we'll beat Singapore, Malaysia, Thailand," he closed.
Demonstration and Rejection
Although the first phase of the tax amnesty program can be considered successful and
proved to be quite a lot of taxpayers who have been following this program, but there
are still a number of people who are against it.

INDOCHEMICAL - 3
One example is Yayasan Satu Keadilan has filed a judicial review to the Constitutional
Court against the Law Number 11 of 2016 on Tax Amnesty because it is considered to
free up launderer from the law.
The trial of the lawsuit takes place on Thursday 29th September. The rejection was
also delivered by hundreds of workers by holding a demonstration. These workers are
mostly factory workers assessed the tax amnesty program is burdensome to them.
"According to us, tax amnesty was not pro the poor, because workers had to pay taxes
while employers do not pay taxes," he explained.
*SOH/i*

No. 539 - October 2016 INDOCHEMICAL -4
SPECIAL REPORT
BUSINESS PROFILE
MARKET PROSPECTS FOR

HIGH-DENSITY POLYETHYLENE PLASTIC (HDPE) IN INDONESIA
Introduction
Demand on HDPolyethylene (HDPE) in Indonesia since 2010 up to 2015 experienced

significant growth. This was triggered by the increasingly diverse use of plastic
materials as industrial raw materials.
HDPE is used as a raw material in various plastic industries both plastic products
produced by molding as well as extrusion process. Industrial goods that absorb
HDPE plastics in relatively large amounts include pipe industry, PE plastic bag
industry, household appliances industry, plastic bottle industry, cable industry,
filament industry and rotational molding industry (water tank).
But surging demand for HDPE is not followed by the ability of its raw material
industry in the form Polyethylne in the country. As a result, imported products still
dominate the PE market in the country, even the ratio of imported products is now
controlled almost 60% of the total PE market.
Product Description
HDPE is thermoplastic types of plastic raw materials that are widely used by various
types of processing industries of plastic goods, but the most is plastic bags industry
and HDPE Pipe.
Polyethylene is produced through polymerization of ethylene (C2H4), either through a

process of radical polymerization, anionic addition polymerization, ion coordination
polymerization or cationic addition polymerization. Each method produces a different
type of polyethylene.

In general, better known are the three types of PE namely HDPE (High Density PE),
LDPE (Low Density PE) and LLDPE (Linear Low PE).
HDPE is a type of PE with densities exceeding or equal to 0.941 g / cm3. HDPE has a
low degree in the ramifications and has strength between molecules and a very high
tensile strength. HDPE can be produced with chromium/silica catalyst, Ziegler-Natta
catalysts or metallocene catalysts. HDPE is used as an ingredient in milk bottles,
detergent packaging, lubricating oils packaging, margarine packaging, water pipes,
and trash.
LDPE has a density of 0.910-0.940 g/cm3. LDPE has high degree against the short
and long chain branching, which means it will not turn into a crystalline structure. It
also indicated that the LDPE has low strength between molecules. This results in
LDPE to have low tensile strength. LDPE is produced by free radical polymerization.
LDPE is used as a container rather strong and the plastic film applications such as
plastic bags and plastic wrap.
LLDPE has a density of between 0.915-0.925 g/cm3. LLDPE is a linear polymer with
a short chain branching by a significant amount. Generally made by
copolymerization of ethylene with short-chain of alpha-olefin (1-butene, 1-hexene, 1-
octene, and so on). LLDPE has higher tensile strength than LDPE, and has a higher
resistance toward pressure.
LLDPE is used as cable wrap, toys, packaging caps, buckets, containers and pipes.
LLDPE is mainly used for films plastic applications due to the nature of its
toughness, flexibility, and its relative transparency.
There are several kinds of polyethylene manufacturing process, including:
1. High Presure Process
In this high pressure process can be used two types of reactors namely
tubular reactors or autoclave reactors (jacketted tube) that have different
operating conditions such as:

a. Autoclave reactor
The operating pressure between 150-200 MPa (typical)

The residence time of 30-60 seconds (typical)
b. Tubular Reactor
The operating pressure used between 200-250 MPa (typical)

The temperature of the reaction depends on the type of oxygen initiator,
thus the reaction temperature is 1900C and if using peroxycarbonate
initiators thus the reaction temperature becomes 1400C.
2. Suspension (Slurry) Process
In this process polyethylene is suspended in a hydrocarbon diluent to

facilitate the process. There are two kinds of processes in suspension (slurry)
process, ie autoclave process and reactor loop process.
a. Autoclave Process
Operating pressure 0.5-1 Mpa (typical)
Reaction temperature between 80-900C (typical)
Diluent used is hexane
The catalyst used is mixed with aluminum alkyl
b. Loop Reactor Process

Operating pressure of 3-4 MPa (typical)
The reaction temperature 1000C (typical)
Diluent used is isobutene
If using Philip type then the catalyst is a mixture of Ti and
Aluminum Alkyl
3. Gas Phase Process
Union Carbide many uses this process by using a fluidized bed reactor. Called
gas phase process because almost all raw materials supplied in gaseous form.

The operating pressure is used between 0.7-2 Mpa (typical)

Reaction temperature between 80-100C (typical)
Poison catalyst : CO2, CO, H2O
Picture-1.
Polyethylene Production Process
Source: Literature
Industry of Polyethylene (HDPE) in Indonesia
Currently in Indonesia there are two manufacturers of polyethylene (PE) operating

with a total installed capacity of 790,000 tons per year. The largest polyethylene
manufacturer is PT. Lotte Chemical Titan Nusantara whose factory is located in
Merak, has an installed capacity of 450,000 tons per year and operated since 1993.
The second largest polyethylene manufacturer is PT. Chandra Asri Petrochemical

(CAP) Tbk (TPIA) with installed capacity of 340,000 tons per year. The company is
located in Anyer Banten having been in commercial operations since 1995. In the
future, CAP is ambitious to become a world player in the business of PE.

Table-1.
Producer of Polyethylene and Capacity in Indonesia, 2016
Production
No. Name Location Technology
Capacity
Producer Plant Ton/Year
1 Chandra Asri Petrochemical, PT Anyer 340,000 Union Carbide/Showa-
Denko
2 Titan Nusantara Indonesia, PT Merak 450,000 BP
TOTAL 790,000
Source: Producer Company, processed
Profile of Main Players of Polyethylene
PT. Chandra Asri Petrochemical Tbk. (TPIA)
Currently, PT. Chandra Asri is the only integrated olefin industrial center in
Indonesia. The company has a very strategic position against other companies
engaged in the medium industry sector of petrochemical to downstream
petrochemical industry (end product).
Chandra Asri factory located in Ciwandan, Cilegon, Banten and Pulo Ampel, Serang.
Chandra Asri uses advanced technology and world-class support facilities, such as
the technology of Lummus Naphtha Cracker which produces ethylene, propylene, C4
Mixed, and high quality Pyrolysis Gasoline (Py-Gas) for Indonesia as well as regional
export markets.
Besides Naphtha Cracker, Chandra Asri also has production facilities of polyethylene
and polypropylene that are integrated by combining two world-class technologies.
Chandra Asri has four reactors under license from Union Carbide Corp. Technology
(Unipol -United States). Of the 4 reactor, one of which is capable of producing both
Linear Low and High Density Polyethylene, while three other reactors able to produce
a variety of Polypropylene.

The fifth reactor is a technology bimodel revolutionary High Density Polyethylene

with a license from Showa Denko K.K. (Japan). Both world-class technologies are
combined to produce various grades of resin to meet majority of Indonesian market
demand.
Originally named P.T. TRI POLYTA INDONESIA was established in 1984 with an
authorized capital of Rp 500,000,000.- fully issued and paid up. The founding
shareholders of the company are Mr. Henry Pribadi AKA (also known as) Liem Oen
Hauw, Mr. Henry Liem AKA Liem Sien Tjay, Mr. Andry Pribadi AKA Liem Liek Mien,
Mr. Wilson Pribadi AKA Liem Oen Djoe (all being Indonesian businessmen of Chinese
extraction) and Mr. Ibrahim Risjad, an indigenous businessman. In 1998, the
authorized capital was raised to Rp 1,030,000,000,000.- issued and paid up capital
to Rp 257,500,000,000.-. Some 29% of its shares being sold to public through
capital and money market the Nasdag National Market in the USA. It is the first
national private company listed on overseas capital and money market. In mid-1997
the company was renamed PT. TRI POLYTA INDONESIA Tbk. (PT. TPIT), or public
listed company. In 2006, the issued capital was raised to Rp. 728,401,000,000 fully
paid up.
Currently the authorized capital of the company amounted to Rp.

12,264,785,664,000.- with issued capital of Rp. 3,286,962,558,000.- entirely paid
up. At the same time companys shares are controlled by PT. BARITO PACIFIC Tbk.,
SCG CHEMICALS Co. Ltd., MAGNA RESOURCES Pte. Ltd., MARIGOLD RESOURCES
Pte. Ltd., Mr. Prajogo Pangestu, Mr. Erwin Ciputra, Mr. Henry Halim, Mr. Lim Chong
Thian and Public (each below 5%).
PT. Lotte Chemical Titan Nusantara (Titan)
PT. Lotte Chemical Nusantara Titan (Titan) is the new name of PT. Titan
Petrochemicals Nusantara which at its inception was named PT. Petrokimia
Nusantara Interindo (PT. PENI). It was established in 1990 with an authorized capital
of US$93,750,000,- which is entirely issued and fully paid up of US$ 18,750,000,-.
Founder and original shareholders of the company are BP Chemicals Ltd. from the
UK (51%), Mitsui & Co. Ltd. and Sumitomo Corporation (respectively 12.5% and both
of Japan), PT. Arseto Petrokimia from Indonesia (27.5%) and Haji Mohamad Hasan or
Bob Hasan (9%), a leading private entrepreneurs.

In 1998 PENI expanded with addition capacity of 200,000 tons and finished in the
next year, so that in 1999 total PENIs capacity became 450,000 tons per year.
In 2006, PENI acquired by petrochemical companies from Malaysia, namely Titan

Chemicals Corp. Bhd. In 2008, the company from Malaysia is also acquiring PT.
Fatrapolindo Nusa Industri Tbk (FPNI) prodsuen PE film, and put PENI as a
subsidiary company of FPNI. PT. FPNI later changed to PT. Titan Kimia Nusantara
Tbk, and PT. PENI changed to PT. Titan Petrokimia Nusantara.
In July 2010, Malaysia Chemisal Titan Corp., acquired by Lotte Chemical of South
Korea, then PT. Titan Kimia Nusantara Tbk changed its name to PT. Lotte Chemical
Titan while PT. Titan Petrokimia Nusantara changed to PT Lotte Chemical Titan
Nusantara.
World-Scale Polyethylene Plant To Be Built In Indonesia
From investigative of Indochemical, new PE plant will increase the source of supply
for the needs of Polyethylene products which have been insufficient for PE market
demand of Indonesia, is expected to increase to 1.4 million TPA, and continues to
grow in line with GDP of Indonesia.
The new HDPE factory is expected to expand petrochemical product market network
of PT. CAP and further contribute to the growth of Indonesia. For your information,
the CAP is a subsidiary of PT. Barito Pacific Tbk as the majority shareholder, and as
an integrated petrochemical company in Indonesia which produce olefins and
polyolefins.
PT. Chandra Asri Petrochemical Tbk (CAP) has also signed a cooperation agreement
with Univation Technologies LLC located in the United States to use UNIPOLTM PE
Process technology.
The cooperation is to build a new world-scale polyethylene plant with a capacity of

400 KTA located in Naphtha Cracker complex integrated in Cilegon, Banten.
Suryandi said the currently CAP operates polyethylene plant in Cilegon with a
total capacity of 336 KTA whereas one train with production capacity of 200 KTA
uses UNIPOL PE technology licensed by Univation Technologies to produce
LLDPE and HDPE resins.

The new plant with production capacity of 400,000 tons of PE per year, which will
use Unipol PE Process technology belongs to the American company, Univation
Technologies LLC. According to a source at CAP which contacted by Indochemical,
PE plant to process ethylene into linear low density polyethylene (LLDPE), high
density polyethylene (HDPE), and metallocene LLDPE. So far, Chandra Asri
usually sells their excess of ethylene to retail customers. After PE plant in
operation, Chandra Asri will discontinue retail sales of ethylene. CAP will stop to
sell ethylene to Lotte Chemical Titan and Asahimas Chemical. The company will
use its own ethylene production.
In addition, PT Chandra Asri Petrochemical Tbk ambition to embrace the 50%

market share of polyethylene (PE) in the country. To that end, the company will
build new PE plant in Cilegon, Banten, in mid 2017. Currently in the process
design package (PDP). PDP process until the construction of the plant is expected
to take 2 to 2.5 years or expected to operate in 2019.
Polyethylene Production Continue to Increase, 2009-2015
PE production in 2010-2015 has been fluctuating with average growth rate of 3.39%
per year. In 2010, PE production reached 485,272 tons incrased to 611,373 tons in
2011 and increased significantly in 2012 to 689,405 tons. In 2013, PE production
slightly decline to 654,893 tons but then increase to 673,818 tons in 2014 and
reached 540,254 tons.
Table-2.
Polyethylene Production in Indonesia, 2010-2015
Year Production Utility Growth

(Ton) (%) (%)
2010 485,273 63.02 -
2011 611,373 79.40 25.99
2012 689,405 87.27 12.76
2013 654,893 82.90 -5.01
2014 673,818 85.29 2.89
2015 540,254 68.39 -19.82
Average Growth (%) 3.36
Source: Producer of PE and other sources, processed by CIC
Note: * Estimate figure

Imports of HDPE Continue to Increase Each Year
Decreased in production of PE in 2015 was due to increased of imports which were

quite high, reaching 828,524 tons, the highest increase compared to the previous
years. The growth of volume and value of PE imports during the years 2010-2015
was likely to increase, reaching 19.20% and 23.62% per year. In 2009, the volume of
PE imports reached 296,030 tons with a value of US$ 344,536 thousand, then in
2010 improved sufficiently higher to 419,581 tons with a value of US$ 481,134
thousand, the highest increase over the last 6 years, reaching 41.74%.
In 2011, PE imports continued to increase to 507,113 tons with a value of US$

784.286 thousand, and in 2012 to 602,259 tons with a value of US$ 868,029
thousand, by 2015 it had already reached 828,524 tons with a value of US$
1,105,138 thousand, the highest increase compared to the previous years. See table
for detail.
Table-3.
Import of Polyethylene, 2009-2015
Import Growth (%)

Year Volume Value
Volume Value
(Ton) (US$ 000)
2009 296,030 344,536
2010 419,581 579,295 41.74 68.14
2011 507,113 784,286 20.86 35.39
2012 602,259 868,029 18.76 10.68
2013 670,002 1,105,138 11.25 27.32
2014 713,216 1,158,029 6.45 4.79
2015 828,524 1,105,138 16.17 -4.57
Average Growth (%) 19.20 23.62
Source: BPS, processed

From total imports of PE in 2015, the largest volume was HDPE which recorded at
363,183 tons valued at US$ 475,157 thousand, slightly increased compared to
volume in 2014 of 283,271 tons valued at US$ 454,603 thousand. The other large
imports in 2015 were LDPE recorded at 242,850 tons valued at US$ 310,813
thousand, increased compared to the previous year of 184,316 tons valued at US$
279,539 thousand. See table for detail.
Table-4.
Import of PE by Type (HS.Code 3901.10.12 - 3901.20.00), 2014-2015
2015 2014 Unit/Ton/US$,000

Description
Ton US$,000 Ton US$,000 2014 2015
HDPE 363,183 475,157 283,271 454,603 1,308 1,605

LDPE < 0.94 242,850 310,813 184,316 279,539 1,280 1,517
LDPE 182,323 249,341 204,839 342,015 1,368 1,670
OTHERS
LDPE 15,550 27,343 17,206 35,225 1,758 2,047
LLDPE 2,795 3,769 1,885 3,253 1,348 1,726
OTHERS
LLDPE 21,871 38,715 21,699 43,394 1,770 2,000
TOTAL PE 828,572 1,105,138 713,216 1,158,029 1,334 1,624
Source: Central Bureau of Statistics
The Largest Import of HDPE in 2015 were From Malaysia
The largest volume and value of HDPE imports Indonesia in 2015 were from 15
countries including Malaysia, Singapore, Thailand, Saudi Arabia and others as
shown in the following table.
Table -5.
Imports of Polyethylene (HDPE) by Country of Origin, 2015
2015 Share
N0 Country of Origin
Ton US$,000 (%)
1 Malaysia 200,120 258,016 24.12
2 Singapore 199,253 266,062 24.01
3 Thailand 152,592 207,947 18.39
4 Saudi Arabia 106,316 134,213 12.81

2015 Share
N0 Country of Origin
Ton US$,000 (%)
5 Kuwait 41,875 45,481 5.05
6 Korea, Republic Of 25,944 40,735 3.13
7 United Arab Emirates 24,291 32,569 2.93
8 Qatar 20,496 25,622 2.47
9 Japan 16,591 29,418 2.00
10 Philippines 9,679 11,812 1.17
11 Taiwan 7,227 11,065 0.87
12 United States 6,767 12,065 0.82
13 Germany, Fed. Rep. Of 5,355 9,864 0.65
14 China 4,076 7,553 0.49
15 Canada 3,102 3,728 0.37
Others 6,171 8,991 0.74
829,853 1,105,138 100.00
Source: Central Burea of Statistics
Government Regulation
The Government Is Attempting To Lighten The Burden Of Dependence On

Imported Raw Materials of Chemical Products
The limited ability of local industries caused plastics downstream industry relies
heavily on imported raw materials, primarily polyethylene. It can be seen from the
soaring volume of imports of raw materials, as shown by the figure above.
Dependence on imported raw materials has resulted in raw material difficulties,
especially for plastics industry of small scale, one of which is prices that are often
fluctuating. Therefore the government through the Ministry of Industry has sparked
import duty provision borne by the Government (BMDTP).
Government borne import duties as compensation for the Minister of Finance

Regulation No. 19 Year 2009 regarding the determination of import duties on imports
of certain products, including plastic raw materials such as polypropylene (PP) and
polyethylene (PE).

But the facilities in the year 2012 which was budgeted at Rp81.9 billion can only be
absorbed by few large-scale downstream plastic companies. Small companies could
not use the facilities because of all the specification requirements.
Exports of PE Indonesia in 2015 only worth US$ 124.5 million
In the last six years (2009-2015) export volume of PE was still fluctuating with trend
which continues to decline only 4.75% per year, while the value grew only by 1.37%
per year. In 2009, export of PE reached 109,218 tons valued at US$118,501
thousand and in the following year declined 17.23% to 96,531 tons valued at US$
114,849 thousand. In 2011 export slightly increased to 90,863 tons valued at US$
130,222 thousand and increased significantly in 2012 to 104,407 tons valued at US$
142,480 thousand.
In 2013-2015 the export volume continued to decline to 88,381 tons valued at US$
136,146 thousand and in 2015 reached 77,358 tons valued at US$ 125,481
thousand. Decline in export of PE in the last six years among others is because the
domestic demand which grew averagely by 11.52% per year.
Table-6.
Export of Polyethylene, 2009-2015
Export Growth ( % )
Year Volume Value
Volume Value
(Ton) (US$ 000)
2009 109,218 118,501
2010 90,395 114,894 -17.23 -3.04
2011 90,863 130,222 0.52 13.34
2012 104,407 142,480 14.91 9.41
2013 88,381 136,146 -15.35 -4.45
2014 72,722 118,416 -17.72 -13.02
2015 77,358 125,481 6.37 5.97
Average Growth (%/Year) -4.75 1.37
Source: BPS, processed

Supply of Polyethylene
Supply of HDPE for domestic market can be seen from total production added with
import then reduced by export. Based on that illustration, can be known that in
2009 supply of PE reached 718,662 tons. In 2010, supply of PE increased to
822,336 tons then increased in 2011 to 956,450 tons or in 2012-2015 continued to
increase quite significant from 983,125 tons in 2012 to 1,372,726 tons in 2015. See
table for detail.
Table-7.
Supply of Polyethylene, 2010-2015
Supply Demand (Ton)

Year
Production Import Export Domestic Growth (%)
2009 531,850 296,030 109,218 718,662

2010 493,150 419,581 90,395 822,336 14.43
2011 540,200 507,113 90,863 956,450 16.31
2012 485,273 602,259 104,407 983,125 2.79
2013 583,373 670,002 88,381 1,164,994 18.50
2014 640,405 713,216 72,722 1,280,899 9.95
2015 621,560 828,524 77,358 1,372,726 7.17
Average Growth per year (%) 11.52
Consumption of Polyethylene
Plastic Bag Industry
HDPE has very little branching, this is because the selection of the catalyst in the
production (Ziegler-Natta catalysts) and reaction conditions. Because of a bit of
branching, HDPE has high tensile strength and intermolecular forces. HDPE is also
harder and can withstand high temperatures up to (120C). HDPE is also highly
resistant to chemicals that have broad applications, such as plastic bags for
packaging, HDPE pipe, plastic bottles, cables wrapping, fuel tanks, filament,
detergents packaging, household products, and so forth.

In Indonesia the largest consumption of HDPE is by the industry of plastic bags. It

can be seen from the number of manufacturers of plastic bags, which reaches
thousands because the production process is relatively simple to just use one or two
extruder machine and semi-automatic process and the need for raw materials is also
large enough annually. However, not all manufacturers of plastic bags use PE as raw
material, there is also that use PP but the object of study is the one use PE as raw
materials. The report also discussed the companies in the category of industrial scale
which minimum operate two shifts per day, with a capacity of 250 tons per year.
In 2015, total national production capacity of plastic bag industry was estimated to
have reached more than 1,567,400 tons per year. The industry which considered in
this study almost all uses resin as raw material not recycled plastic.
Plastic bag producer which currently has the highest production capacity in
Indonesia is PT. Tristar Plastik which located in Semarang reaching 40,000 tons per
year followed by PT. Sido Bangun in Surabaya with capacity of 30,000 tons per year
followed by PT. Harapan Sejahtera Karya Utama, PT. Sanipak Indonesia and PT.
Supernova with production capacity respectively reach 20,000 tons per year. See
table for detail.
Table-8.
Producer of Plastic Bag and Its Capacity, 2015
Plant Capacity
No Name of Company Raw Material
Site Ton/Year
1 Tristar Plastik, PT Semarang 40,000 PE, PP

2 Sido Bangun, PT Surabaya 30,000 PE, PP
3 Harapan Sejahtera Karya Utama, PT Sidoarjo 20,000 PE, PP
4 Sanipak Indonesia, PT Riau 20,000 PE, PP
5 Supernova, PT Jakarta 20,000 PE, PP
7 Fukusuke Kogyo Indonesia, PT Bekasi 19,000 PE, PP
8 Dianasakti Surya Plastik Ind., PT Solo 15,000 PE, PP
9 Dolpin Putra Sejati, PT Serang 15,000 PE, PP
10 Sumplas Dwi Sapta, PT Bandung 15,000 PE, PP
11 Tri Gema Mandiri, PT Tangerang 15,000 PE, PP
12 Indo Callplast, PT Karanganyar 12,600 PE, PP

Plant Capacity
Site Ton/Year
13 Sanny Indoraya Polyprima, PT Tangerang 10,000 PE, PP

14 Murti Putra Bersaudara, PT Semarang 9,100 PE, PP
15 Simongan Plastik Fact., PT Semarang 9,000 PE, PP
16 Sari Indoplastama, PT Tangerang 8,400 PE, PP
17 Matahari, PP Purwokerto 8,200 PE, PP
18 Rejo Mulyo, PT Semarang 8,000 PE, PP
19 Asia Cakra Ceria, PT Solo 8,000 PE, PP
20 Asiaplast Industries, PT Tangerang 8,000 PE, PP
21 Dharma Kridatama, PT Bekasi 7,200 PE, PP
22 Interplast Surya Perkasa, PT Tangerang 7,200 PE, PP
23 Murni Mapan Mandiri, PT Serang 7,200 PE, PP
24 Prima Makmur Rotokemindo, PT Jakarta 6,800 PE, PP
25 Sumbertex, PT Batang 6,400 PE, PP
26 Plasticindo Megah, PT Jakarta 6,340 PE, PP
27 Dipa Lestari Jauhari, PT Bekasi 6,000 PE, PP
28 Guna abadi, PT Semarang 6,000 PE, PP
29 Ligo Kriyasa Mandiri, PT Jakarta 6,000 PE, PP
40 Sapari Plastik Industri Pratama, PT Cianjur 6,000 PE, PP
41 Naga & Semut, PT Kebumen 5,600 PE, PP
42 Abadi Jaya, PT Semarang 5,000 PE, PP
43 San Bahagia Lomindo, PT Solo 4,800 PE, PP
44 Omega, PT Cirebon 4,600 PE, PP
45 Budi Indoplast Indah, PT Tangerang 4,500 PE, PP
46 Indra Maju Indah Jaya, PT Bandung 4,500 PE, PP
47 Politama Pakindo, PT Semarang 4,500 PE, PP
48 Sanmoro Plastinindo Perkasa, PT Kediri 4,500 PE, PP
49 Arta Buana Company, PT Solo 4,500 PE, PP
50 Mitra Jatindo Selaras, PT Bekasi 4,460 PE, PP
51 Utama Murni Plasindo, PT Jakarta 4,400 PE, PP
52 Bintang Jaya Plasindo, PT Tangerang 4,000 PE, PP
53 Santoso, PP Solo 4,000 PE, PP
54 Maya Sentosa Plastik Prima, PT Jakarta 3,800 PE, PP
55 Muara Agung Plastik, PT Jakarta 3,700 PE, PP
56 Diponegoro, PT Surabaya 3,600 PE, PP

Plant Capacity
Site Ton/Year
57 Dwijaya Indah Plastik, PT Jakarta 3,600 PE, PP

58 Aster Jawa, PT Jakarta 3,200 PE, PP
59 Inkuplas, PT Surabaya 3,000 PE, PP
60 Lemah Abang Perkasa, PT Bekasi 3,000 PE, PP
61 Majakara, PT Ambon 3,000 PE, PP
62 Naga Dunia, PT Kebumen 3,000 PE, PP
63 Tujuh Roda, PT Bogor 3,000 PE, PP
64 Garuda Lucky Plasindo, PT Karanganyar 2,500 PE, PP
65 Limbah Plastik Top, PT Solo 2,500 PE, PP
66 Super Exim Sari, PT Bogor 2,500 PE, PP
67 Anggun Permai, PT Tangerang 2,500 PE, PP
68 Bina Imperial, PT Jakarta 2,400 PE, PP
69 Kidang Bulan, PT Solo 2,400 PE, PP
70 Sido Mukti, PT Solo 2,400 PE, PP
71 Insan Adi Mulya, PT Jakarta 2,300 PE, PP
72 Four Ace Cimaggis, PT Bogor 2,200 PE, PP
73 Hasfarm Taerim Industries, PT Bekasi 2,100 PE, PP
74 Batu Putih Nusantara, PT U. Pandang 2,000 PE, PP
75 Cerindo Ceriaplast, PT Karanganyar 2,000 PE, PP
76 Gajah Mas, PT Solo 2,000 PE, PP
7 Garuda Plastik, PT Bandung 2,000 PE, PP
78 Plastin Mega Profita, PT Bandung 2,000 PE, PP
79 Wonorejo Makmur Abadi, PT Karanganyar 2,000 PE, PP
90 Aster Dharma Industri, PT Tangerang 2,000 PE, PP
91 Karya Niaga Bersama, PT Malang 1,900 PE, PP
92 Bina Rukun Jaya, PT Bekasi 1,860 PE, PP
93 Irian, PT Surabaya 1,840 PE, PP
94 Medan Plastika, PT Medan 1,840 PE, PP
95 Sumber Plastik,PT Medan 1,840 PE, PP
96 Super Plastik Dolar, PT Tasikmalaya 1,840 PE, PP
97 Daiyaplas, PT Semarang 1,800 PE, PP
98 Dong Jung Indonesia, PT Tangerang 1,800 PE, PP

Plant Capacity
Site Ton/Year
99 Duta Pacific, PT Surabaya 1,800 PE, PP

100 Apollo Star Plastik, PT Malang 1,800 PE, PP
101 Feeling Plastik Industri, PT Jakarta 1,720 PE, PP
102 Megah Jaya Lestari Prima, PT Semarang 1,720 PE, PP
103 Metroploly Jayanusa, PT Jakarta 1,720 PE, PP
104 Pelita Kombos, UD U. Pandang 1,720 PE, PP
105 Sari Indah Packaging, PT U. Pandang 1,720 PE, PP
106 Sumber Indah Plastik, PT Padang 1,720 PE, PP
107 Super Polyethylene, PT Jakarta 1,720 PE, PP
108 Dunia Mega Raya, PT Tangerang 1,600 PE, PP
109 M Alipin U. Pandang 1,600 PE, PP
110 Mahardi Kunci Mas, PT Bogor 1,600 PE, PP
111 Teluk Harapan, PT Jakarta 1,600 PE, PP
112 Makarya Abdi Pertiwi, PT Sidoarjo 1,550 PE, PP
113 Cahaya Plastik Industri, PT Surabaya 1,500 PE, PP
114 Delta Istana Plastik Ind., PT Solo 1,500 PE, PP
115 Duta Budi Tulus Rejo, PT Surabaya 1,500 PE, PP
116 Dwikarya Wisma, PT Semarang 1,500 PE, PP
117 Master Bumi Plastika, PT Jakarta 1,500 PE, PP
118 Adhikara Suryatama, PT Bandung 1,500 PE, PP
119 Adikemas Polaprima, PT Purwakarta 1,500 PE, PP
200 Adimas, PT Surabaya 1,500 PE, PP
201 Ajuna, PT Jakarta 1,500 PE, PP
202 Megah Buana Pancarona, PT Jakarta 1,480 PE, PP
203 Nusantara Packaging, PT Jakarta 1,480 PE, PP
204 Setia Plastik Industri, PT Medan 1,480 PE, PP
205 Abadi Nylon Rope, PT Surabaya 1,400 PE, PP
206 Makmur, CV Jakarta 1,360 PE, PP
207 Pendawa, PP Bandung 1,360 PE, PP
208 Sentosa Abadi Makmur, PT Jakarta 1,360 PE, PP
209 Ada, PT Surabaya 1,300 PE, PP
210 Berdikari Jaya, PT Jakarta 1,200 PE, PP

Plant Capacity
Site Ton/Year
211 Bintang Plasindo, PT Bandung 1,200 PE, PP

212 Cahaya Baru, PT Jakarta 1,200 PE, PP
213 Cipta Maju, PT Jakarta 1,200 PE, PP
214 Dua Saudara, PT Jakarta 1,200 PE, PP
215 Golgon, PT Medan 1,200 PE, PP
216 Industri Kantongan, PT Medan 1,200 PE, PP
217 Jaya Abadi Semarang Perkasa, PT Ungaran 1,200 PE, PP
218 Sinar Surya, PT Bandung 1,200 PE, PP
219 Tiger Pratama Industries, PT Jakarta 1,200 PE, PP
220 Gunawan Plastik, PT Sidoarjo 1,020 PE, PP
221 Batam Mujur, PT Riau 1,000 PE, PP
222 Hankuk Color Industry, PT Tangerang 1,000 PE, PP
223 Harapan Plastik, PT U. Pandang 1,000 PE, PP
224 Indo Chemical Plastik, PT U. Pandang 1,000 PE, PP
225 Injaplast, PT Surabaya 500 PE, PP
226 Musimas Sejahtera Abadi, PT Jakarta 250 PE, PP
227 Surya Polyplas Utama, PT Surabaya 1,100 PE, PP
Others 1,000,000 PE, PP
TOTAL 1,567,400
Source: From various sources, processed
From the research Indochemical, plastic bags that are produced in Indonesia mostly
use raw materials from grade high density polyethylene (HDPE). During this time the
use of PE as raw material for plastic bags are more numerous than the PP. Despite a
decline in production in the year 2009, PE bag plastic production in Indonesia
remains likely to increase during 2010 to 2015 with growth of 12.3% per year.
From research Indochemical, producing plastic bags is relatively simple, so not a lot
of raw material is wasted. Information obtained mentioned that there are about 1% of
raw material is lost into scrap during the production process. Thus, to produce 1 ton
of plastic bags, it takes about 1,010 kg of raw material (resin). So that in 2015 the
plastic bags industry requires PE plastic ore of 634,240 tons, continued to increase
compared to previous years. Detailed picture presented in the table below.

Table -9.
Production of PE Bag and Consumption of PE Resin, 2010-2015
Consumption
Production of Growth
Year of
PE Bag (%)
PE Resin
2010 359,561 363,157
2011 404,192 408,235 12.41
2012 411,423 415,748 1.81
2013 544,100 549,541 32.18
2014 591,110 596,997 8.64
2015 627,995 634,240 6.24
Average (%) 12.30
Source: From various sources, processed by Indochemical
Houseware Industry from PE Continue to Increase
Plastics industry that produces housewares in Indonesia has been growing since the
60's and the currently number of the producers has reached more than hundred
units of companies include large, medium and home industry. However, registered
with the category of large and medium industries, numbering around 150 companies
with installed capacity totaled around 398,010 tons per year.
A company that has the most capacity at this time is PT. Langgeng Makmur Industri,
reaching 28,000 tons per year, followed by PT. Bumi Tiro Sumber Koyo with a
capacity of 21,000 tons per year, then PT. Ria Star at third position with a capacity of
20,000 tons per year, PT. Huty Solidindo with a capacity of 15,750 tons, PT. Indo
Daisun Jaya and PT. Maspion, each having a production capacity of 15,000 tons per
year. Other manufacturers can be seen in the table below.
Table-10.
Producers of Plastic Houseware and Its Capacity, 2015
Capacity
No. Name of Company Plant Location
Ton/year
1 Langgeng Makmur Industri, PT Sidoarjo 28,000
2 Bumitirto Sumberkoyo, PT Pasuruan 21,000
3 Ria Star Indonesia, PT Surabaya 20,000
4 Huty Solidindo, PT Tangerang 15,750
5 Indo Daisun Jaya, PT Jakarta 15,000
6 Maspion, PT Sby, Sidoarjo 15,000

Capacity
Ton/year
7 Action Raya Industries, PT Jakarta 9,700
8 Asaba Prima Makmur, PT Tangerang 9,000
9 United International, PT Jakarta 8,000
10 Pioneer Plastic, PT Jakarta 7,200
11 Ometraco Arya Samantha, PT Jakarta 6,500
12 Prima Kalplas, PT Jakarta 6,200
13 Mustika Langgeng Plastik, PT Bekasi 6,000
14 Besar Indah Gemilang, PT Tangerang 5,000
15 Golgon, PT Medan 4,500
16 Cahaya Perdana Plastik, PT Jakarta 4,000
17 Wijaya Indonesia Plastik, PT Jakarta 3,800
18 Dilihan Glory, PT Tangerang 3,500
19 Adimas, PT Surabaya 3,500
20 Buana Plastik, PT Jakarta 3,000
21 Indra Plastic, PT Tangerang 3,000
22 Kirana Pacific Luas, PT Jakarta 3,000
23 Plasmodern Industry, PT Gresik 3,000
24 Red Leaf Plastic, PT Jakarta 3,000
25 Royce Enterprise, PT Riau 3,000
26 Sapari Plastik Industri Pratama, PT Cianjur 3,000
27 Sayap Mas Utama, PT Gresik 3,000
28 Agung Plastik,PT Surabaya 3,000
29 Amara Platsic Industries, PT Sidoarjo 3,000
30 Aneka Kemasindo Utama Tbk., PT Tangerang 3,000
31 Kober, CV Medan 2,700
32 Sayap Mas Utama, PT Jakarta 2,600
33 Berlian Plastik, PT Jakarta 2,300
34 Citra Indokemas Rapih, PT Bekasi 2,300
35 Diamond Plastik, PT Surakarta 2,250
36 Super Tata Raya Steel, PT Tangerang 2,250
37 Ada, PT Surabaya 2,250
38 Biggy Cemerlang, PT Jakarta 2,230
39 Kadu Jaya Perkasa, PT Tangerang 2,100
40 Hataco, CV Surabaya 2,060
41 Mewah Indah Jaya, PT Medan 2,060
42 Nagaria Semesta, PT Bogor 2,040
43 Dwi Tunggal Plastik Industri, PT Surabaya 2,000
44 Putra Jati Bahagia, PT Tangerang 2,000
45 Cahaya Baru, PT Jakarta 1,800
46 Multiplast Indojaya, PT Surabaya 1,800
47 Sako Jaya, PT Jakarta 1,800
48 Budi Sejati, PT Surabaya 1,700
49 Mutiara Indopan Gemilang, PT Bogor 1,700

Capacity
Ton/year
50 Pancaguna Plastindo, PT Sukoharjo 1,600
51 Cahaya Merah Delima, PT Bks, Bogor 1,500
52 Eka Makmur, CV Tangerang 1,500
53 Indah Plastic Factory, PT Surabaya 1,500
54 Indonesia Camay Plastic, PT Tangerang 1,500
55 Upaya Kita Tanggap Sasmita, PT Surabaya 1,500
56 Sinar Harapan, PT Jakarta 1,400
57 Plasindo Bhama Sastra, PT Tangerang 1,350
58 Hasil Raya Industries, PT Jakarta 1,300
59 Sinar Cikupa Perdana, PT Tangerang 1,300
60 Ereme Pramudita, PT Bogor 1,200
61 Karya Plastic, PT Tangerang 1,200
62 Samudra Plastik, PT Jakarta 1,200
63 Sinar Batik Plastik, PT Surabaya 1,200
64 Anugerah Plastik, PT Jakarta 1,200
65 Tradisi, PT Tangerang 1,130
66 Maspion Kencana, PT Bekasi 1,100
67 Putranaga Asia-Mold. Eng., PT Pasuruan 1,000
68 AdePlastik,P Bandung 900
69 Megah Buana Pancarona, PT Jakarta 850
70 Cipta Maju, PT Jakarta 800
71 Indonesia Raya, PT Jakarta 800
72 Pluit Plastic Industry, PT Jakarta 800
73 Singa Berlian, PT Jakarta 800
74 Abadi Plastic, CV Bekasi 800
75 Inta Polymer Industries, PT Mojokerto 750
76 Pan Asia Chemical, PT Jakarta 750
77 San Sentral Indah, PT Bandung 750
78 Santo Plastik, PT Bandung 750
79 Trindo Maju Sukses, PT Tangerang 750
80 Singamas, PT Jakarta 700
81 Chien Fu Utama Plastik, PT Serang 650
82 Multi Raya Indah Abadi, PT Tangerang 650
83 Dunia Karya, PT Jakarta 600
84 Majakara, PT Ambon 600
85 Sahabat Intim Plastik, PT Jakarta 600
86 Sapta Kencana Ungu, PT Surabaya 600
87 Ultra Plastic Industri, PT Medan 600
88 Aneka Sentosa,PT Jakarta 600
89 Cipta Maju, PT Bone 500
90 Eka Jaya Plastik, PT Sidoarjo 500
91 Indah Jaya Plastik, PT Bandung 500
92 Ketapang Plastik Industri, PT Bandung 500

Capacity
Ton/year
93 Komet Indonesia, PT Jakarta 500
94 Luhur, PT U. Pandang 500
95 Presindo Central, PT Tangerang 500
96 Teluk Harapan, PT Jakarta 500
97 Techplast Sarana Persada, PT Jakarta 460
98 Diamond, PT Jakarta 450
99 Dunia Mega Raya, PT Tangerang 450
100 Dwi Karya Plastik, PT Bandung 450
101 Perdana Jaya Makmur, PT Jakarta 450
102 Djaja Plastik, PT Jakarta 400
103 Dunia Baru, PT Tangerang 400
104 Union Plastik, PT Jakarta 360
105 Sumber Urip Plastik, PT Jakarta 320
106 Kemas Indah Maju, PT Jakarta 300
107 Muara Pacific Industries, PT Jakarta 300
108 Superstar, PT Yogyakarta 300
109 Terus Jadi, PT Jakarta 300
110 Dwinaga Sakti Abadi, PT Tangerang 200
111 Harmonic Plasindo Raya, PT Tangerang 200
112 Indah Cup Sukses Makmur, PT Bogor 3,000
113 Sumber Jaya Plastik, PT Surabaya 2,000
114 Bali Boxes, PT Kuta 300
Others 80,000
Total 398,010
Source: From various sources, processed by Indochemical
During 2009-2015, production of houseware made from PE in Indonesia has grown

rapidly of each year with the growth rate reached 12.82% per year. Houseware
products that use HDPE include tuppleware, trays, mugs, flasks, plates, plastic
stool, and so forth.
According to records of Indochemical, in 2009 total production of housewares made

of PE plastic reach 156,742 tons, then the next year rose to 192,373 tons and
reached 314,122 tons in 2015.
Assuming there is not much different from plastic bag industry, thus in 2009 this
industry absorbed PE resin as much as 156,742 tons, and in 2010 increased to
188,601 tons and in 2013 reached 278,359 tons or 2015 recorded at 309,576 tons.
See table for detail.

Table-11.
Production of Houseware made of PE and Volume of PE Resin Consumed,
2010-2015
Houseware
PE Resin Growth
Year Production
Consumption (%)
(Ton)
2010 192,373 188,601 22.73
2011 250,193 245,287 30.06
2012 275,657 270,252 10.18
2013 283,926 278,359 3.00
2014 302,205 298,359 7.18
2015 314,122 309,576 3.76
Average Growth, %/Year 12.82
Source: Indochemical, from various sources
Demand on Plastic Bottle Increases Significantly Each Year
From the record of Indochemical, currently in Indonesia recorded more than 100
companies engaged in the industrial sector of plastic bottles and jerry cans with total
capacity reaching 277,904 tons, consisting of a bottle industry capacity of 263,102
tons per year and jerry cans industry amounted to 14,892 tons.
Among the companies that belong to large capacity is PT. Petindo Jaya Sakti,
reaching 33,100 tons bottles per year, followed by PT. Dynaplast with a capacity of
15,000 tons per year, PT. Aqua with a capacity of 13,000 tons per year, and PT. Indo
Daisun Jaya with a capacity of 10,000 tons per year. Other manufacturers can be
seen in the following table.
Table-12.
Producer of Plastic Bottle and Its Capacity, 2015
PLANT CAPACITY, TON/YEAR RAW

NO NAME OF COMPANY
SITE BOTTLE JERRY CAN MATERIAL
1 Petindo Jaya Sakti, PT Tangerang 33,100 - PET
Jkt, Tng,
2 Dynaplast, PT 15,000 - PVC, PE, PC
Bks
3 Aqua, PT Bogor 13,000 - PET
4 Indo Daisun Jaya, PT Jakarta 10,000 - PET, PVC, PE
5 Adyarsa Plastindo, PT Sukabumi 9,700 - PET
6 Smart Corp., PT Jkt, Sby 9,760 - PET, PVC, PE


NO NAME OF COMPANY
7 BIMOLI, PT Bitung 9,180 - PET
Tirta Graha Parama
8 Bogor 9,000 - PET
Artha, PT
9 Berlina Co Ltd., PT Surabaya 8,400 3,400 PVC, PE, PC
10 Sari Multi Utama, PT Tangerang 8,000 - PET
11 Indonesia PET Bottle, PT Pandaan 7,200 - PET
12 Mahardi Kunci Mas, PT Bogor 7,200 - PET
13 Pradja Adyaratama, PT Sukabumi 7,200 - PET
14 Sohat Nurmedina, PT Sukabumi 7,000 - PET
15 Cypress Plastic Ind., PT Jakarta 6,600 - PVC, PE, PC
Tirta Permatasari
16 U. Pandang 6,000 - PET
Bottling, PT
17 Varia Industri Tirta, PT Bogor 4,600 - PET
Perfectindo Pratama
18 Pasuruan 4,400 - PVC, PE
Plastic, PT
Bell Packaging Indonesia,
20 Bekasi 4,000 - PET, PVC, PE
PT
21 Sajang Heulang, PT Jakarta 4,000 - PET
22 Prima Kalplas, PT Jakarta 3,600 - PET, PVC, PE
23 Tiger Sakti Industries, PT Jakarta 3,600 - PET, PC
24 Samodra Montaz Pack, PT Jakarta 3,250 - PET, PVC
25 Abadi Adi Mulya, PT Jakarta 3,200 - PET, PVC, PE
26 Kageo Igar Jaya, PT Bekasi 3,200 - PET, PC
27 Arta Mengala Mulia, PT Tangerang 3,000 - PET
28 Ivo Mas Tunggal, PT Medan 3,000 - PET, PVC, PE
29 Tirta Dewata Semesta, PT Den Pasar 3,000 - PET
30 Pulau Sambu, PT Riau 2,700 - PET, PVC
Kurnia Mustika Kencana,
31 Semarang 2,500 2,000 PVC, PE
PT
Arisa Mandiri Pratama,
32 Demak 2,400 - PET
PT
Tirta Kemas Tritunggal
33 Sukabumi 2,400 - PET
Perkasa, PT
Rindang Kemasan Indah,
34 Surabaya 2,300 - PVC, PE
PT
35 Masuki Indopan Jaya, PT Jakarta 2,160 - PE
36 Maspion, PT Surabaya 2,000 - PVC, PE
37 Rexplast Coorporation, PT Sidoarjo 2,000 - PVC, PE
38 Supratik Suryamas, PT Sleman 2,000 - PVC, PE
39 Mulyorejo Industrial, PT Surabaya 1,630 - PVC, PE
Bumimulia Indah Lestari,
40 Bekasi 1,500 - PVC, PE
PT
Siahtrans Plasindo
41 U. Pandang 1,500 - PVC, PE
Perkasa, PT


NO NAME OF COMPANY
Cimelati Plastik Utama,
42 Sukabumi 1,200 - PER
PT
43 Dinito Jayasakti, PT Jakarta 1,200 - PET, PVC, PE
Dino Indonesia Industrial,
44 Bekasi 1,200 - PET
PT
45 Andarila Plastik, PT Jakarta 1,000 - PET
46 Astaguna Andalan, PT Bekasi 1,000 - PVC, PE
Surabaya Blowing Ind.,
47 Surabaya 800 - PVC, PE
PT
48 Bumi Unggul, PT Jakarta 780 - PVC, PE
49 Polyunggul, PT Bekasi 750 - PET,PC
50 Ade Karya Plastik,PT Bandung 600 - PPVC, PE
Aneka Kemasindo Utama
51 Tangerang 600 500 PET, PVC, PE
Tbk., PT
42 Cahaya Merah Delima, PT Bks, Bogor 600 - PET, PVC, PE
53 Internet Mandiri, PT Tangerang 600 - PVC, PE
54 Mitra Plastindo, PT Surabaya 540 - PVC, PE
55 Asia Plastic Industries, PT Surabaya 500 - PVC, PE
56 Bunga Intan Plastik, PT Bogor 500 - PVC, PE
57 Erindo Mandiri, PT Bogor 500 - PET
58 Indogloss, PT Surabaya 500 - PVC, PE
Kemasindo Indah
59 Tangerang 500 200 PVC, PE
Triutama, PT
60 Pioneer Plastic, PT Jakarta 500 - PET, PC
61 Samolin Surya, PT Surabaya 500 500 PE
62 Setia Plastik, PT Manado 432 432 PE
63 Limber Sakti, PT Surabaya 430 - PVC, PE
64 Abadi Plastic, CV Bekasi 400 - PVC, PE
65 Anugerah Plastik, PT Jakarta 400 400 PVC, PE
66 Arenapala Plastindo, PT Bekasi 400 400 PVC, PE
Beruang Plastik Utama,
67 Tangerang 400 - PVC, PE
PT
68 Kemas Indah Maju, PT Jakarta 400 - PVC, PE
69 Muara Agung Plastik, PT Jakarta 400 - PVC, PE
70 Putra Jati Bahagia, PT Tangerang 400 - PVC, PE
71 Tirta Sarana Mutiara, PT Bekasi 400 - PET
72 Hasil Raya Industries, PT Jakarta 350 - PET, PVC, PE
73 Joenoes Ika Mulia, PT Jakarta 350 - PET, PVC
74 Biggy Cemerlang, PT Jakarta 300 - PVC, PE, PC
75 Indo Tirta Jaya Abadi, PT Semarang 300 - PET
76 Karyana Plastik, CV Bogor 300 - PVC, PE
77 Kawi Plastik, PT Sidoarjo 300 400 PVC, PE
New Union Unggul
78 Jakarta 300 - PET, PC
Plastic, PT


NO NAME OF COMPANY
79 Sahabat Intim Plastik, PT Jakarta 300 - PVC, PE
80 Sanlit Inti Plastik, PT Bandung 300 300 PE
81 Sejati, PP Surabaya 300 300 PE
82 Sinar Harapan, PT Jakarta 300 - PVC, PE
83 Widatra Bhakti, PT Pasuruan 300 - PVC, PE
Teluk
84 Budi Sari Bumi, PT 250 - PVC, PE
Bitung
85 Lumbung Mas Mulia, PT Jakarta 250 - PVC, PE
86 Lumutmas Interindo, PT Tegal 250 - PET
87 Union Plastik, PT Jakarta 220 - PVC, PE
Mutiara Indopan
88 Bogor 200 - PVC, PE
Gemilang, PT
Omniseals Industries
89 Jakarta 200 - PVC, PE
Corp., PT
90 Abason Baby Product, PT Surabaya 130 - PET, PVC, PE
Modern Pigeon Indonesia,
91 Serang 100 - PET, PC
PT
92 Cipta Maju, PT Watampone - 240 PE
93 Indoacidatama, PT Karanganyar - 400 PE
94 Kadu Jaya Perkasa, PT Tangerang - - PVC, PE
95 Panra, CV Pontianak - 300 PE
96 Putra Jati Bahagia, PT Tangerang - 400 PE
97 Rakindo Abditama, PT Tangerang - 500 PE
98 Red Leaf Plastic, PT Jakarta - 500 PE
99 Sako Jaya, PT Palembang - 360 PE
Supratama Aneka
100 Bekasi - 360 PVC, PE
Industri, PT
Others 5,000 3,000
Sub-Total 263,012 14,892
TOTAL 277,904
Source : Processed by Indochemical from various sources
During the period of 2009-2015, the production of plastic bottles made from PE resin
in Indonesia experienced significant growth reached 14.20% per year. This growth is
fueled by the rapid growth of food and soft drinks industry that use plastic packaging
and plastic bottles that was growing at about 11-12% per year. The high demand for
plastic bottles has triggered the increase in production of PE plastic bottles in the
country.
In 2009, production of PE plastic bottles 41,830 tons, then in 2010 reached 51,852
tons and in 2015 rose 12.21% to 101,086 tons. The number of PE resin absorbed in
this industrial sector can be seen in the following table.

Table-13.
Production of PE Plastic Bottle and Volume of PE Resin Consumed, 2010-2015
Production of
PE Resin Growth
Year PE Bottle
Consumed (%)
(Ton)
2010 51,852 52,889
2011 69,166 70,549 33.39
2012 78,117 79,680 12.94
2013 82,437 84,086 5.53
2014 91,175 90,086 7.14
2015 102,572 101,086 12.21
Cable and HDPE Pipe Industries
Currently in Indonesia operating about 55 companies that produce cable with total
capacity of 326,660 ton, including electric cable of 277,000 tons and phone cable
49,660 ton.
Producers which considered large-sized are PT. Sumi Indokabel Tbk, with capacity of
60,000 tons, then PT. Sucaco 31,800 tons, PT. Jembo Kabel 22,550 tons and PT.
Kabelindo Murni 22,500 tons respectively per year. Other producers and their
capacity can be seen in the following table.
Table-14.
Cable Producer and Its Capacity, 2015
Production Capcity, Ton/Year

No Name of Company Electric Phone
Total
Cable Cable/Others
1 Sumi Indo Kabel Tbk, PT 57,000 3,000 60,000
2 Sucaco, PT 23,400 8,400 31,800
3 Jembo Cable Company, PT 22,200 350 22,550
4 Kabelindo Murni, PT 21,500 1,000 22,500
5 Aneka Kabel Cipta Guna, PT 20,000 - 20,000
6 Voksel Electric Co Tbk, PT 19,500 1,000 20,500
7 Pirelli Cable Indonesia, PT 15,200 - 15,200
8 Gerbang Buana Bandung Raya. PT 14,000 6,000 20,000


Total
Cable Cable/Others
9 Citra Mahasurya Industries, PT 13,800 600 14,400
10 Terang Kita, PT 13,060 6,500 19,560
11 Indotrijaya Industries, PT 9,000 600 9,600
12 BICC Berca Cable, PT 8,000 2,900 10,900
13 GT Kabel Indonesia Tbk., PT 5,200 6,500 11,700
14 Walsin Lippo Kabel, PT 4,000 4,000 8,000
15 Golden Horse, PT 3,600 1,000 4,600
16 Adcor Industry, PT 2,500 2,500 5,000
17 Pulung Copperworks, PT 2,400 - 2,400
18 Sinar Merbabu, PT 2,400 - 2,400
19 Adamas Superindon Kabel, PT 2,000 1,000 3,000
20 Ewindo Murni, PT 2,000 660 2,660
21 Cahaya Angkasa Abadi, PT 1,500 500 2,000
22 Star Impactama Indah, PT 1,500 1,000 2,500
23 Inkabel Jaya, PT 1,200 - 1,200
24 Volex Indonesia, PT 1,100 - 1,100
25 Jayako Murni Abadi, PT 1,000 - 1,000
26 Kawat Mas Perkasa, PT 1,000 - 1,000
27 Pudji Tjahaja, PT 1,000 - 1,000
28 Phenolic Prima Indonesia, PT 885 - 885
29 Praba Wiradewa, PT 800 - 800
30 Indowire Prima Industrindo, PT 720 - 720
31 Starindo Agung Pratama, PT 670 - 670
32 Furin Jaya, PT 620 - 620
33 Nikkatsu Electric Work, PT 500 - 500
34 Federal Mardhika Corp, PT 450 300 750
35 Wiradian Alumintana, PT 400 - 400
36 Sinar Matahari, PT 360 - 360
37 Angkawijaya Sakti, PT 300 - 300
38 Eratoma Nusa Pratama, PT 300 - 300
39 Intimetal Eka Perkasa, PT 280 - 280
40 Aries Trijaya, PT 225 - 225
41 Guna Citra Kumala Karya, PT 200 - 200
42 Sinar Plastik, PT 160 - 160
43 Pan Super Bintang, PT 150 - 150
44 Simca Prima Mulia, PT 150 300 450
45 Sumaco Jaya Abadi, PT 150 - 150
46 Panca Jaya, PT 130 - 130


Total
Cable Cable/Others
47 Karya Kabel Taliarta, PT 120 - 120
48 Sumed Baru Industries, PT 120 - 120
49 Centrin Elektrindo, PT 100 - 100
50 Sinar Intan Putra Nusa, PT 100 - 100
51 Sukses Setia, PT 50 - 50
52 CablexSentosa, PT - 450 450
53 EDS Manufacturing Indonesia, PT - 400 400
54 Sinar Monas Industries, PT - 1,000 1,000
TOTAL 277,000 49,960 326,960
Source: APKABEL and other sources, processed by Indochemical
Cable products mainly consist of copper wire and coated by compound of HDPE
plastic. The study results of Indochemical against some of cabling products,
illustrates that the proportion of compound in cable product is approximately
39.65% of the average cable products, while HDPE resin content in the compound is
about 92.7%.
In the last 5 years from 2010 to 2015, the production of electric cable and cables as
well as phone cables each year tends to increase with the growth rate reaching an
average of 15.91% per year.
In 2010, production of cables made of PE reached 109,308 tons, then in the next
year increased to 144,188 tons, and in 2015 reached 224,370 tons. Based on the
assumption thus the amount of PE resin absorbed in this sector can be seen in the
table below.
Table-15.
Production of PE Cable and Volume of PE Resin Consumed,
2010-2015
PE Cable
PE Resin Growth
Year Production
Consumed (%)
(Ton)
2010 109,308 40,187 -
2011 144,188 53,010 31.91
2012 161,105 59,230 11.73
2013 168,255 61,859 4.44

PE Cable
PE Resin Growth
Year Production
Consumed (%)
(Ton)
2014 207,750 76,379 23.47
2015 224,370 82,490 8.00
HDPE Pipe Industry
HDPE Pipe - (High Density Polyethylene) is a pressurized plastic pipes which are
widely used for water pipes and gas pipes. Called as plastic pipe, because HDPE
material derived from petroleum polymer. Therefore, PE material prices are affected
by fluctuations in oil prices.
High density polyethylene (High density polyethylene, HDPE) is a polyethylene

thermoplastic made from petroleum. Requires 1.75 kg of petroleum (as energy and
raw materials) to make 1 kg of HDPE.
HDPE Pipe (High Density Poly Ethylene) is often used for pipelines with special
characteristics. Suitable for use in pressurized drinking water applications
distribution lines because it is made of Polyethylene (PE). The superiority on the
material properties are: to have low level of cracking, resistance to high impact and
high elasticity so that it has a span of use for more than 50 years.
In the market, HDPE pipes are prepared for use in the form of bars and coil, thus
simplifying the process of transportation and installation. Judging by the
composition of the material, HDPE pipe is divided into two types, namely PE 80
(design stress 6.3 Mpa) and PE 100 (design stress 8 MPA).
In Indonesia, the company that makes HDPE pipe is not many. But plastic pipe
players such as PT. Pralon Indonesia, PT Wavin Indonesia, PT. Maspion Kencana, PT.
Rusli Vinilon, PT. Indo Pipe, PT. Tyco Eurapipe Indonesia and PT. Sinar Nusantara,
in particular already produce HDPE pipe. But there are also some companies that
produce HDPE only based on order. From the investigation of Indochemical,
estimated total production capacity of HDPE pipe reached 356,664 tons, its capacity
utilization is only 20%.

Table-16.
Producer and Production Capacity of HDPE and PVC Pipe, 2015
No Name Location PVC HDPE FITING
1 PT WAVIN Cibitung 31,000 18,550 1,800

2 PT PRALON Bogor 10,400 9,000 1,000
3 PT HARAPAN WIDYA TAMA (UNILON) Bekasi 2,500
4 PT MASPION KENCANA Cibitung 117,000 117,000
5 PT RUSLI VINILON SAKTI Cileungsi 17,350 18,000 37,150
6 PT INDOPIPE Gresik IE 20,750 480
7 PT TYCO EURAPIPE INDONESIA Karawang 23,400
8 PT SINAR UTAMA NUSANTARA Medan 18,000
9 PT INVILON SAGITA Deli Serdang 12,000 12,000
10 PT DUTA DYNASTI Bekasi 35,612 35,612 12,960
11 PT EXTRULINDO RAYA ABADI Citeureup 2,500 3,600
12 PT HARAPAN WIDYATAMA PERTIWI Bekasi 2,500 2,500
13 PT JAYAABADI SEMARANG Ungaran 7,500 7,500
PT LANGGENG MAKMUR INDUSTRI
14 Tbk Banten 7,050 7,050
15 PT LINGKAR MATRA Banten 26,000 26,000
16 PT MEPOLY INDUSTRY Corp Tandes 11,000 11,000
17 PT MK ELEXTRIC INDONESIA Purwakarta 1,200 1,200
18 PT NIAT TATALAKSANA Banten 12,000 12,000
19 PT PLUIT MAKMUR LESTARI Bekasi 400 400
20 PT SAN DHARMA PLASTIC Batujajar 120 120
21 PT SAPTA KENCANA WUNGU Surabata IE 420 420 1,080
22 PT SETIA PRATAMA LESTARI PI Tangerang
23 PD SUMED BARU INDUSTRI Tangerang 360 360
PT TJAKRINDO MAS PLASTIC
24 INDUSTRY Gresik 3,500 3,500
25 PT UNITED ROPE & LINE INDUSTRY Medan 6,202 6,202
Total Capacity 304,114 356,664 54,470

Source: CIC, and Indochemical.

HDPE pipe production in Indonesia is not as big as PVC pipe production, but in the
future potential of HDPE pipe has a sizeable market opportunity. Because HDPE pipe
can be used for main network of water pipes, gas pipes and other utilities.
Additionally, HDPE pipe has advantages such as corrosion resistant, flexible,
lightweight, easily transportable and has quite considerable strengths and pressure.
HDPE pipe production and PE raw material requirements can be seen in the
following table.
Table-17.
Productioon of HDPE Pipe and PE Resin Consumed,
2010-2015
HDPE Pipe PE Resin Growth,

Year
Production, Consumed (%)
(Ton)
2010 38,800 38,257
2011 43,040 42,437 10.93
2012 51,400 50,680 19.42
2013 54,300 53,540 5.64
2014 56,400 55,610 3.87
2015 61,510 60,649 9.06
Average Growth, %/Year 9.78
Note:* estimate figure
Total Consumption of Polyethylene (PE)
From the illustration above, in 2015 total PE consumption amounted to 1,372,726

tons, mostly or around 634,240 tons were absorbed by plastic bags industry,
followed by houseware industry which consume as much as 309,576 tons, and
plastic bottle industry 101,086 ton, then cable industry as much as 28,304 tons,
filament industry 74,677 tons, rotational moulding industry 74,304 tons, the
remaining 63,587 tons were absorbed by various other industries. For more details,
see the following table.

Table-18.
Total Consumption of Polyethylene by Its User Industry, 2010-2015
Consumption of PE Resin, (Ton) Trend

Industrial User
2010 2011 2012 2013 2014 2015 (%)
Plastic Bag 363,157 408,235 415,748 549,541 596,997 634,240 12.26
Houseware 188,601 245,287 270,252 278,359 298,359 309,576 10.84
Plastic Bottle 52,889 70,549 79,680 84,086 90,086 101,086 14.24
Cable 40,187 53,010 59,230 61,859 76,379 82,490 15.91
HDPE Pipe 38,257 42,437 50,680 53,540 55,610 60,649 9.78
Filament 35,075 46,527 52,269 60,501 67,829 74,677 16.59
Rotational Moulding 25,973 34,722 39,298 41,554 43,411 46,421 12.80
Others 78,198 55,683 15,968 35,554 52,227 63,587 18.24
TOTAL 822,336 956,450 983,125 1,164,994 1,280,899 1,372,726 10.94
Source: Indochemical
Projection of Polyethylene (PE) Demand
In the future, PE resin demand by industrial users in Indonesia will continue to

increase. Indochemical estimates the average PE demand growth is expected to reach
5.96% per year. The highest demand is estimated to be experienced by the cable
industry, which reaches 8.39% while the lowest is filament industry which is only
about 3.97% per year.
With this assumption, during the period of 2014-2020 PE demand by industrial

users can be expected, as presented in the following table.
Table-19.
Projection of Polyethylene Demand, 2016-2020
HDPE Resin Consumption, (TON)

Industrial User
2016 2017 2018 2019 2020
Plastic Bag 704,006 781,447 867,406 962,821 1,068,731

Houseware 340,534 374,587 412,046 453,250 498,575
Plastic Bottle 113,216 126,802 142,019 159,061 178,148
Cable 94,038 107,204 122,212 139,322 158,827
HDPE Pipe 66,714 73,385 80,724 88,796 97,676
Filament 84,012 94,514 106,328 119,619 134,571

HDPE Resin Consumption, (TON)

Industrial User
2016 2017 2018 2019 2020
Rotational Moulding 51,295 56,681 62,633 69,209 76,476

Others 73,125 84,094 96,708 111,214 127,896
TOTAL 1,526,941 1,698,714 1,890,075 2,103,292 2,340,901
Sumber : Prediksi Indochemical
From the analysis above, then it can be seen that in 2016-2020, industrial sector
that will most absorbing HDPE resin is plastic bag industry (56%), followed by
houseware industry (20%), then the plastic bottle industry (6%), cable industry (5%),
filament industry and rotomoulding industry respectively 3% and the rest (7%)
consumed by other industries.
Graphic 1
Average Consumption of PE Resin By Industrial User, 2016
Source: Indochemical
Conclusion
Based on the analysis of Indochemical, it can be illustrated that needs of HD

Polyethylene in the past five years rose sharply reaching 10.9% per year. This
condition was triggered by among others the purchasing power of all kinds of goods
that are likely to continue rising as the frequency of public spending for goods

packed using plastic bags, the social demand for goods tertiary such as vehicles
treatment products, houseware, growing consumption and replacement of HDPE pipe
in main network sector of clean water, oil and gas and so forth.
But the PE needs which continue to soar can not be followed by supply ability of
local producers, so that PE imports will continue to increase quite high. PE demand
growth in the coming years will continue to increase and this will lead to a gap
between supply ability of local producers to meet the domestic demand widened.
PE producer in the country basically have been trying to narrow that gap by
expanding the factory, but these efforts are still in the form of a plan which infact in
its realization is still facing some obstacles.
Thus, until 2020 to operate plastics industry, producers are still largely relying on
raw materials (PE) from import and a possible to be stable in 2019 after the operation
of the new PE /HDPE plant of PT. Chandra Asri Petrochemical Tbk. (PT. CAP).
*CIC/R

No. 539 October 2016 INDOCHEMICAL- 39
COMPANY PROFILE
PT. CHANDRA ASRI PETROCHEMICAL Tbk
1. A d d r e s s : Head Office
Wisma Barito Pacific Tower A, 7th Floor
Jl. Let. Jend. S. Parman Kav. 62-63
Jakarta 11410, Indonesia
Phone (62-21) 530 7950
Fax. (62-21) 530 8930
Plant
Jl. Raya Anyer Km. 123
Ciwandan, Cilegon
Banten 42447, Indonesia
Phone (62-254) 601 501
Fax. (62-254) 601 838/843
SMI Plant
Desa Mangunreja
Puloampel, Serang
Banten 42456, Indonesia
Phone (62-254) 575 0080
Fax (62-254) 575 0085
2. Date of Establishment : a. 02 November 1984 as P.T. TRI POLYTA INDONESIA

b. 1996 as P.T. TRI POLYTA INDONESIA Tbk.
c. 28 October 2010 as PT. CHANDRA ASRI
PETROCHEMICAL Tbk.
3. Legal Status : P.T. (Perseroan Terbatas) or Limited Liability Company
4. Legalization by the : No. AHU-3525606.AH-01.11.Tahun 2015

Ministry of Law Dated 26 June 2015
5. C a t e g o r y : Public Listed Company
6. Lines of Business : Petrochemical, trading, freight and service industries
7. Production Capacity : a. Ethylene - 860 KTPA

b. Propylene - 470 KTPA
c. Mixed C4 - 315 KTPA
d. Py-gas - 400 KTPA

e. Polyethylene - 336 KTPA

f. Polypopylene - 480 KTPA
g. Styrene Monomer - 340 KTPA
h. Butadiene - 100 KTPA
8. Capitalization : Authorized Capital - Rp. 12,264,785.664,000.-
Issued Capital - Rp. 3,286,962,558,000.-
Paid up Capital - Rp. 3,286,962,558,000.
9. Shareholders : PT. BARITO PACIFIC Tbk Rp. 1,480,383,520,000.-

SCG CHEMICALS Co. Ltd. Rp. 1,004,825,959,000.-
MAGNA RESOURCES Pte. Ltd. Rp. 493,662,636,000.-
MARIGOLD RESOURCES Pte. Ltd. Rp. 169,362,186,000.-
Mr. Prajogo Pangestu Rp. 30,258,550,000.-
Mr. Erwin Ciputra Rp. 1,895,200,000.-
Mr. Henry Halim Rp. 1,824,500,000.-
Mr. Lim Chong Thian Rp. 26,500,000.-
Public (each below 5%) Rp. 104,723,507,000.-
10. Total Investment : Initial Plant

a. Equity Capital - US$ 1,614.4 million
b. Loan Capital - US$ 1,701.1 million
c. Total Investment - US$ 3,315.5 million
Expansion Plant (planned)
a. Equity Capital - US$ 565 million
b. Loan Capital - US$ 1,315 million
c. Total Investment - US$ 1,880 million
11. B a n k e r s : a. P.T. Bank DBS Indonesia

b. P.T. Bank Central Asia Tbk
12. Total Employees : 1,753 persons
13. Supervisory Board : Chairman : Mr. Djoko Suyanto

Vice Chairman : Mr. Tan Ek Kia
Members : a. Mr. Ho Hon Cheong
b. Mr. Loeki Sundjaja Pangestu
c. Mr. Agus Salim Pangestu
d. Mr. Chaovalit Ekabut
e. Mr. Cholanat Yanaranop
14. Board of Management : President Director : Mr. Erwin Ciputra

Vice President Directors : a. Mr. Kulachet Dharachandra
b. Mr. Baritono Prajogo Pangestu

Directors : a. Mr. Terry Lim Chong Thian

b. Mr. Piboon Sirinantanakul
c. Mr. Fransiskus Ruly Aryawan
d. Mr. Suryandi
15. Associated Companies : a. The BARITO PACIFIC Group Members

b. SCG CHEMICALS Co. Ltd.
c. MARIGOLD RESOURCES PTE. LTD. of Singapore
(Investment Holding)
d. MAGNA RESOURCES Pte. Ltd
Remaks:
Originally named P.T. TRI POLYTA INDONESIA was established in 1984 with an
authorized capital of Rp 500,000,000.- fully issued and paid up. The founding
shareholders of the company are Mr. Henry Pribadi AKA (also known as) Liem Oen
Hauw, Mr. Henry Liem AKA Liem Sien Tjay, Mr. Andry Pribadi AKA Liem Liek Mien, Mr.
Wilson Pribadi AKA Liem Oen Djoe (all being Indonesian businessmen of Chinese
extraction) and Mr. Ibrahim Risjad, an indigenous businessman. In 1998, the
authorized capital was raised to Rp 1,030,000,000,000.- issued and paid up capital to
Rp 257,500,000,000.-. Some 29% of its shares being sold to public through capital
and money market the Nasdag National Market in the USA. It is the first national
private company listed on overseas capital and money market. In mid-1997 the
company was renamed P.T. TRI POLYTA INDONESIA Tbk. (P.T. TPIT), or public listed
company. In 2006, the issued capital was raised to Rp. 728,401,000,000 fully paid up.
In order to integrate and strengthen its business, TPI and PT. Chandra Asri conducted a
merger and became PT. Chandra Asri Petrochemical Tbk (PT. CAPT) effectively on 1
January 2011. Since then, the companys listed shares recorded in Indonesia Stock
Exchange amounted to 3,066,196,416 shares. On 31 October 2013, the company
received an Effective Statement Letter from OJK and approval from the companys
shareholders in the Extraordinary General Meeting to conduct a Limited Public Offering
I Shares with Preemptive Rights (rights issue). On 15 November 2013, the company
listed a rights issue shares in Indonesia Stock Exchange. A total of 220,766,142 new
shares were issued by the company so that the listed shares in Indonesia Stock
Exchange increased to 3,286,962,558 shares.

Currently the authorized capital of the company amounted to Rp. 12,264,785,664,000.-

with issued capital of Rp. 3,286,962,558,000.- entirely paid up. At the same time
companys shares are controlled by PT. BARITO PACIFIC Tbk., SCG CHEMICALS Co.
Ltd., MAGNA RESOURCES Pte. Ltd., MARIGOLD RESOURCES Pte. Ltd., Mr. Prajogo
Pangestu, Mr. Erwin Ciputra, Mr. Henry Halim, Mr. Lim Chong Thian and Public (each
below 5%).
PT. CAPT has been operating since 1993 and currently operates an integrated
petrochemical complex located in Ciwandan, Cilegon in Banten Province comprising one
Naphtha Cracker, two Polyethylene trains, three Polypropylene trains and one
Butadiene plant. The company is the largest integrated petrochemical producer in
Indonesia and operates the countrys only Naphtha Cracker. It produces Olefins
(Ethylene, Propylene and by-products, such as Py-Gas and Mixed C4) and Polyolefins
(Polyethylene, an Ethylene by-product, and Polypropylene, a Propylene by-product), and
Styrene Monomer and by-products such as Ethyl Benzene, Toluene and Benzene
Toluene mixture, and Butadiene and by-product such as Raffinate.
In addition, the company has a tank and jetty rental business operated by a subsidiary
of PT. Styrindo Mono Indonesia (SMI), namely PT. Redeco Petrolin Utama (RPU) and also
directly by the company itself.
The table below sets forth the production capacity of the companys plants:
Note: *Capacity after the Cracker Expansion project completed on December 2015.

The companys products are sold as key raw materials for the production of a wide
variety of consumer and industrial products. The company sells Olefins and byproducts
and Polyethylene in both the domestic and export markets, and Polypropylene in the
domestic market while Styrene Monomer and Butadiene in both domestic and export
markets.
Besides that, PT. CAPT also engaged in investment holding by controlling shares of
some companies as listed below:
- 100% shares of ALTUS CAPITAL Pte. Ltd., Singapore dealing with finance
- 99.99% shares of PT. STYRINDO MONO INDONESIA dealing with industry of
styrene monomer & ethyl benzene
- 99.97% shares of PT. PETROKIMIA BUTADIENE INDONESIA dealing with
petrochemical
- 50.75% shares of PT. REDECO PETROLIN UTAMA dealing with Tank Lease &
Jetty Management Service
On 9 December 2015, the company recorded a significant milestone with the successful
Mechanical Completion of the Cracker Expansion project which resulted in a 43%
capacity increase for its products namely Ethylene (from 600 KTPA to 860 KTPA),
Propylene (320 KTPA to 470 KTPA), Pygas (from 280 KTPA to 400 KTPA), and Mixed C4
(from 220 KTPA to 315 KTPA). The EPC works were carried out by Toyo Engineering
Japan since September 2013 and was completed on time and on budget.
In its operaiton the company has obtained certificaiton of ISO 9001:2008, certificate ISO
14001:2004, SNI 054:2011 from Sucofindo, certificate of Safety and Health Management
System (SMK3), certificate OHSAS 18001:2007 and HALAL product certification for all
products of Polyethylene and Polyprophylene under the brand trademarks of Asrene
and Trilene from the MUI.
*Dv/i*

No. 539 October 2016 INDOCHEMICAL - 44
NEWS & ANALYSIS
INORGANIC CHEMICAL
1. GOVERNMENT PUSH THE USE OF ORGANIC FERTILIZERS
The Ministry of Agriculture will maximize the use of organic fertilizer as the main
composition in cultivating crops for local farmers in Indonesia that has been widely
use inorganic fertilizers.
Balanced fertilization is one important factor in improving productivity and

agricultural production to achieve food sovereignty. At this time the government
plans to adjust fertilizer subsidy policy. The plan has been starting in 2016, a
fertilizer subsidy through the mechanism of direct cash subsidy will be launched in a
pilot-scale project.
Director General of Infrastructure Ministry of Agriculture Sumarjo Gatot Irianto said

the use of inorganic fertilizers in various areas often exaggerated, but the function of
organic fertilizer is rarely maximized, whereas we have lot of organic waste in
Indonesia. He explains the processing of organic fertilizer has been good, but just the
farmers have been familiar with inorganic.
So far, the provision of fertilizer subsidy is carried out through the mechanism of
Group Requisites Definitive Planning (RDKK). According to Gatot, from year to year,
the allocation of fertilizer subsidy is likely to increase. In 2012, the fertilizer subsidy
reached 8.95 million tons, worth Rp13.94 trillion rose to 8.83 million tons worth
Rp15.83 trillion in 2013, to 7.78 million tons worth Rp21.04 trillion in 2014, to 9.55
million tons worth Rp39.48 trillion in 2015.
What said by Gatot turned out to be justified by Banyumas Regent Achmad Husein.
According to him, the farmers in his region rely heavily on inorganic fertilizers,
particularly those of subsidized. Ahmad explained the long-term use of inorganic
fertilizers will change soil conditions. According to him, the dependence of farmers on
the type of fertilizer has been shown to affect soil conditions become tougher. In fact,
previously farm land in Banyumas rated still soft and deep. Therefore, Ahmad said
the district government will always support every step of socialization to encourage
people to switch to organic fertilizer.

Central Statistics Agency data showed in 2013, agriculture was still the sector with
the largest contribution, which reached 20.86% of the gross regional domestic
product (GRDP) of Banyumas regency reaching Rp14.23 trillion. The agriculture
sector has since 2011 become the biggest contributor to GDP Banyumas.
Some time ago, PT Pupuk Indonesia (Persero) chose Balikpapan city into a pilot
project for the processing of organic waste into organic fertilizer raw materials. This
was stated when the company signed a memorandum of understanding with the City
Government of Balikpapan. The memorandum of understanding contains a
cooperation agreement on the processing of organic waste. Later, Balikpapan will
provide organic fertilizer raw material for PT Pupuk Indonesia.
President Director of PT Pupuk Indonesia Aas Asikin Isdat said the selection of
Balikpapan as a pilot project is due to the potential of waste generated per year as
high as 93,000 tons. Of these, the organic waste generated is estimated to reach
63,000 tons. "Later Balikpapan will provide fertilizer raw materials. Later we will
purchase that raw material. Currently the purchase price is still being discussed
with the government," he said.
With this partnership Balikpapan Mayor Rizal Effendi said he will seek to provide
raw materials according to specifications required by the company. This cooperation
is also considered able to realize a dream target of zero waste. "This cooperation is
important for Balikpapan, so now the waste produced can actually be used for
organic fertilizer. So the market for the utilization of organic waste is also available,
so the waste problem is no longer a problem for the city," he said.
PT Pupuk Indonesia also is trying to increase the production of organic fertilizers to

meet the needs of balanced fertilization patterns periodically staged by the Ministry
of Agriculture. The pattern of the balanced fertilizer meant is 5:3:2, namely 500 kg of
organic fertilizer, 300 kg of NPK, and 200 kg of urea fertilizer for the existing each
hectare of farmland. Currently, the company's production capacity of organic
fertilizer per year to reach 2 million tons. Production is carried out in partnership
with other parties. Of these, 1 million tons allocated for subsidies, in accordance with
the mandate given by the Ministry of Agriculture.

Other discussions revealed by the Chief Representative of Bank Indonesia

Purwokerto Rahmat Hernowo. He said currently he is intensifying food crop in some
areas to food security. The move is mainly to be pursued with the introduction of
Hazton method.
Rahmat explained cultivation techniques that will allow crop productivity to increase
by two-fold in the same area of agricultural land. He is optimistic that production of
Hazton method can reach 10 tons/ha with cultivation techniques and the selection of
appropriate varieties. Because the results of the method test with ordinary varieties
can produce 8.4 tons/ha. In fact, usually the farmer can only produce an average of
4 tons/ha.
BI direct involvement is not only to boost food security, but so the farmers can be
introduced to the science of entrepreneurship to be able to improve their welfare.
*CIC/i*
______________oooOOooo_______________
HERBAL MEDICINE NYONYA MENEER RECEIVED AWARD FROM THE
PRESIDENT
The pioneer of development of herbal medicine Lauw Ping Nio alias Nyonya Meneer
received honors Satyalencana Culture from the President. A total of 54 culturals
received award from the Ministry of Education and Culture (Kemendikbud) in
appreciation of activities of Culture and Art Tradition Maestro Choice Award 2016.
Delivery of Culture and Art Tradition Maestro Award in 2016 given by the Minister of
Education and Culture (Education) Muhadjir Effendy. Award recipients of 54 people
consists of nine categories, namely Degree Honor from the President Star Rating
Budaya Parama Dharma, Degree Honor from the President Grades Satyalancana
Culture, Creator, Pioneer, and Reformer, Conservationist, Maestro Art Tradition,
Children and Youth, Local Government, Media, Community and Individual
Foreigners. Charles Saerang, grandchildren and President Director of PT Nyonya
Meneer, revealed the award of honors Satyalencana Culture was given because his
grandmother rated as a pioneer in the development of traditional herbal medicine
into healthy industrial products. Bisnis.com.

PHARMACY AND COSMETICS
1. THE GOVERNMENT CONTINUES TO ENCOURAGE COSMETICS AND NATIONAL

HERBAL INDUSTRY
Cosmetic and herbal medicine industries are two sectors that can grow and support
state revenue. With a number of industries and users of cosmetics and herbal
medicine that continues to grow, the sectors are expected to become one of the
industries that are able to move the economy in the future.
Therefore the Ministry of Industry is committed to increase the independence of

national herbal and cosmetics industry in efforts to reduce dependence on imported
raw materials. Moreover, Indonesia has great potential for development of these
sectors due to the high number of inhabitants and the availability of abundant
natural resources.
Minister of Industry Airlangga Hartanto said he continues to emphasize the mastery

of technology to cosmetic and herbal industry players in order to be able to process
local raw materials and subsequent campaigning for increased use of domestic
products (P3DN) to the public.
In addition, the government also sought to open up opportunities for market

expansion and economic cooperation for national cosmetics and herbal industry.
This is realized through the implementation of the scheme of comprehensive free
trade agreement.
Airlangga added cosmetic industry is one of strategic and potential industries

because there are currently 760 cosmetics companies spread throughout Indonesia
and able to absorb as much as 75 thousand workers directly and 600 thousand
indirect workers. Based on Master Plan of National Industry Development (RIPIN) in
2015-2035, herbal and cosmetics industries are priority sectors because they play
major role as one of the main drivers of the national economy.
Cosmetic product trade balance experienced a surplus of 90 percent. This is

indicated by the value of exports of cosmetics in 2015 reached USD 818 million, or
two times more than the value of imports amounted to USD 441 million. As for the
medicinal products in recent years sales also showed an encouraging thing.

This can be seen in sales of herbal medicine in 2015 which reached Rp 16 trillion,
and this year sales are expected to reach Rp 17 trillion. Currently, there are 1,247
herbal industries consisting of 129 Traditional Medicine Industries (IOT) and the rest
belonged to the Medium Traditional Medicine Business (UMOT) and Small Traditional
Medicine Business (UKOT) which spread throughout Indonesia, especially in Java.
Until today, traditional medicine industry is able to absorb as many as 15 million

workers, which includes 3 million absorbed in the herbal medicine industry that
serves as a medicine and the remaining 12 million absorbed in the herbal medicine
industry that has developed into food, beverages, cosmetics, spa, and aroma therapy.
On the same occasion, Coordinating Minister for Human Development and Culture
Puan Maharani said the Government continues to make efforts to improve the
competitiveness of national industry by publishing a strategic policy to strengthen
the structure of the sector. According to him, the consumption of products made
abroad led the Indonesian product becomes less desirable, so it is necessary to
increase the love of local products, such as cosmetics and herbal medicine.
Beware Of Illegal Circulation of Cosmetics and Herbal Medicine
On the other hand, although the revenue of cosmetics and herbal medicine industry
has increased every year. But that does not mean that these industries unhindered.
One of very disturbing the growth in these two industries in the country is the
number of illegal products that still haunt the sales in Indonesia.
To anticipate this, the Coordinating Minister for Human Development and Culture
(PMK) Puan Maharani asked the Food and Drug Supervisory Agency (BPOM) in order
to monitor and dismantle syndicate of illegal herbal medicine and cosmetics that
have been troubling domestic industry. BPOM should actively seek whether the
products sold in the market is a legal or illegal goods.
Puan said that inter-ministerial coordination is required in order to combat illegal

medicinal products and cosmetics on the market. According to him, the relevant
ministries should conduct spot checks to the markets to find and eradicate these
illegal products.

Chairman of the Association of Indonesian Cosmetics Company (PERKOSMI) Putri

Kusuma Wardani said that illegal products could potentially harm various elements
in Indonesia, including government, industry and consumers nationwide. According
to Putri, the government will lose money because of illegal products that do not pay
taxes to the government, but still sell it to the public.
In addition, domestic industry will also be harmed, since without registering and
paying taxes, illegal products can be sold more cheaply in the market, where people
are often looking for products at an affordable price. And the more harm the people
or consumers who buy these products could potentially become victims because of
knowledge lack about the content used in the illegal products.
Wardhani added last year the growth of cosmetics industry was still single digit,
which was 9%. This was due to several obstacles one of them is the entering of illegal
cosmetic products to the market. She asked the government to revise Regulation No.
87/2015, the Regulation No. 70/2015 and Regulation 22/2016 because it harms the
industry. He pointed out on lack of verification on imported cosmetic products when
entering the port.
*CIC/i*
______________oooOOooo_______________
MINISTRY OF INDUSTRY DOES NOT AGREE ON THE REVISION OF MINERBA
LAW
Ministry of Industry said he did not approve the plan to revise Mineral and Coal Law
or extending the export of mineral concentrates as it will have an impact on
industrial raw materials smelter. Director General of Development Industrial Zoning
(PPI) of the Ministry of Industry Imam Haryono stated institutions reject the revised
legislation of Mineral and Coal since it would affect the uncertainty for investors in
the industrial sector smelter. In fact, since 2012, there have been 21 smelters which
plan to invest in the smelter industry with a total investment of US$ 12 billion. Not
long ago, Plt. Minister of Energy and Mineral Resources Luhut Binsar Pandjaitan
plans to submit a revision of Mineral and Coal law to extend the export of mineral
concentrates.Bisnis.com.

CEMENT, CERAMIC AND GLASS
1. LED LIGHTING INDUSTRY CONTINUES TO BE DEVELOPED
Along with public awareness on energy-saving products as well as global trends of

Association of Indonesian Electrical Lamp Industry (Aperlindo) stated that the
potential LED light industry will continue to be developed.
Chairman of Aperlindo John Manoppo explained that in 2015, an increase in sales of

LED lights up to 100% from 40 million units in 2014 to 80 million units in 2015.
Moreover, this figure can still be improved with the still shift of consumers who use
energy-saving lights (LHE). "The need for lights in Indonesia is averagely 300 million
units per year. It still has the potential to be developed further, "he said.
However, local production of LED lights still not reach 3 million units per year, from
ten local players. According to John, this is because the industry is still looking
forward to certainty of regulatory from the government. "They actually want to
develop, but still hesitate because there is no rule yet. HS code and SNI are not
available yet. If the regulation existing, I believe the business players of this industry
will develop. DCL is now still 20% -30% can also be increased to 40% if the industry
develops, "he said.
John explained that the government needs to move quickly so that industry can take
a good momentum for domestic market and in the Asean region. Because in ASEAN,
there are just three countries that have lighting industry namely Indonesia, Thailand
and Vietnam.
John said that LED light imports have reached 50 million units. However, he
acknowledged the number of imports is difficult to detect because there is no
supervision from the government as they do not apply SNI. Currently the lighting
market in the country is still controlled by about 70% by imports products while
local production is estimated at only about 25 million or half of the distribution of
imported products.

According to him, there is no excuse for the government not to implement the SNI as
the testing facility is ready. He even worried if SNI is not immediately required will
affect the interest of investors to invest their funds in the country and threaten the
growth of domestic lighting industry. "If there is no standard, we like trash for import
lamps with assorted qualitied and can not be filtered out," he said.
Last year the total import of LED light in Indonesia reached 64 million units, or
about 80 percent of the needs of LED lights in Indonesia, which reached 80 million
units. That number went up significantly compared to the import of lights in 2014
reached 40 million units.
Total production of LED lights in Indonesia currently reaches 5 million units per
year. Until now there are about 15 companies that manufacture LED lights. Even
John says there are two companies that declared interest to invest in Indonesia
because of the potential for the housing market is very large.
As for value investment reached US$20 - US$30 million with potential employment of
200-300 people. To welcome the Indonesian cooperation agreements with European
countries, he continued, the potential export of domestic industry is also increasingly
open.
LHE Lighting Industry Grows Dimmer
The government's effort to foster local Energy Saving Lamp (LHE) industry seems
doomed to fail. Of the 18 LHE manufacturers, now only nine companies that can
survive. The nine companies include PT Multi Indocitra, PT Ningbo Indonesia, PT
Sinar Angkasa Rungkut, PT Hikari, PT Niko Indonesia and PT Panasonic Lighting
Indonesia.
The government's policy to lower import duties of lamp components that have to be
imported were not able to make all local LHE manufacturers grown. Understandably,
many LHE components have to be imported. Those components include capacitors,
resistors, dioroid and phosphorus.
John Manopo said many light industries are closed because they are not able to
compete with imported products that currently not subject to import duties or zero
import duty. "Imported lamps could be cheaper than locally made," he said.

Director of Electronics and Telematics Industry, C. Triharso said that at this time,
only a fraction of the SNI LHE applicable mandatory, namely SNI related to safety
standards. While standards performance relating to lamps quality has not been
enacted mandatory. It can become one of the reasons for imported LHE continue to
flow into Indonesia.
Market share of local LHE today is still fairly small only reaches 20%. General Affair
Manager PT Tjipto Langgeng Abadi, Iqbal Sanni revealed LHE industry's installed
capacity in the country currently reaches 28.8 million units per year. However,
production is only about 5.6 million units per year. Of these 90% are sold to
domestic market and around 10% are sold to the export market.
Iqbal confirmed the invasion of imported light makes the company difficult to boost
production. You see, the absorption is not maximal. For that he expects the
government to impose mandatory all SNI and safeguard measures to withstand the
onslaught of imported light bulbs in the country.
*CIC/i*
______________oooOOooo_______________
BALIS SILVER INDUSTRY NEEDS ATTENTION
Silver business players in Bali called attention of local governments related to the
rampant circulation of silver mixed with alpaca products marketed under pure silver
label accompanied with purity stamp. The existence of alpaca mixed silver with a
selling price much cheaper than the original silver, feared would erode consumer
confidence in products from Dewata Island. Chairman of Bali Silver Association
(APB) Nyoman Mudita stated such insistence is not to ban the mix product, but so
the manufacturers to provide clarity to consumers. She considered such practice
would eventually harm the good name of silver industry in this area, which has been
built for a long time. Silver products business players in Bali increasingly restless
because the alpaca mixed silver products is currently available with code stamp 925
so convincing the buyers. According to BPS data of Bali, silver and jewelry are among
main export commodities of Bali. Unfortunately, jewelry exports of Bali continued to
show a downward trend. In July 2016, the exports value of jewelry worth US$ 3.68
million, dropped by 47.99% compared to the same month last year to US$4.3 million.
Bisnis.com.

PULP AND PAPER
1. GRAPHICS INDUSTRY CONTINUES TO GROW
Business players in graphics industry are optimistic printing based industry,

publishing and converting in the next year could grow 5.3% or better compared with
a projected 4.7% this year. Director of PT Wahana Kemalaniaga (Wakeni) Rini
Sumardi said based on research by world marketing agencies, graphic arts industry
next year could grow to 5.3%.
According to Rini, graphics industry growth in Indonesia in recent years exceeded

1.6% of world graphics growth. In the midst of the European debt crisis and the
weakening US economy, she added, graphics industry in Asia had grown very
fantastic. "Indonesia is one of countries in Asia with very good growth of graphics
industry," she said.
It spawned many innovative product developments, creative business ideas and

promising future perspectives of more attractive printing industry. Chairman of the
Association of Indonesia Graphic Companies (PPGI) Jimmy Junianto said the
magnitude of graphics industry growth is related to high consumption of paper in the
country. Based on data from Indonesian Pulp and Paper Association (APKI), paper
industry capacity reached 12.5 million tons per year with an average domestic
consumption reaching 60% - 65% per year.
"In terms of domestic consumption, growth in graphics industry this year may be
higher than the earlier projection of 4.7%. This is evident from the data import of
printing machines of graphics industry that are up 40% this year to US$ 392 million
compared with imports in 2010 which was only US$ 280 million, "he said.
World business players of pulp and paper perceive Indonesia has a promising
market. Regions that consist of the archipelago, with a population of 242.3 million
people, is an attractive market for pulp and paper industry and printing/graphics in
particular. Moreover, citing data from the International Monetary Fund (IMF) in
2013, the per capita income remained stable at the level of US$5,088.

Within the scope of ASEAN, based on data from the Association of Indonesia Graphic
Companies (PPGI), some large industries in Indonesia contributed about 46.5 percent
of gross domestic product (GDP) overall ASEAN. Similarly, Indonesia's economy is
seen to have a stable categorization in the last ten years although most are still
supported by domestic consumption. Printing industry or also known as graphics is
very close to stretching the retailer overall.
Chairman of PPGI, Jimmy Junianto said Indonesia is the world's seventh paper
producers, after the United States and China. In the future, Indonesia is expected to
be in the five largest paper producers. "Its just how the readiness of the paper mill.
Such as Sinar Mas, increased its investment in Ogan Ilir Komiring with a capacity of
2.5 million tons in the form of pulp. While the production of paper now reaches 13.6
million tons and last year reached 12.9 million tons" he said.
He also added to increase product capacity by 1 million ton, required an investment

of up to 1 billion dollars or about a trillion Rupiah. Specifically for the market that
absorb approximately 12.9 million tons used by domestic of about 60 percent. With
per ton sale price of US$900 and added value of about 30 to 40 percent.
Flexible Packaging Papers Began To Be Replaced
Graphics industry in the country is assessing activity of printing that use paper has
been many replaced by flexible packaging given the higher demand. Chairman of the
Association of Indonesia Graphic Companies (PPGI) Jimmy Junianto said the growth
of paper industry still follows the growth of the economy or about 5%. However, that
figure is still below the growth of flexible packaging so many printing entrepreneurs
shifted to that direction.
"Indeed, paper is being replaced by glass, metal, and plastic. Flexible packaging
growth is more than economic growth. In the range of 7%, because the current
tendency of multinational companies to replace their products faster. In the fabric is
also growing quite rapidly, "he said.
On the other hand, graphics industrial players asses that government must also
contribute to intensify the socialization of graphic products abroad in order to
increase exports. Jimmy explained that in addition to socialization, the government
also needs to tighten exports of paper products which has low added value.

Exports value in 2014 stood at US$199 million. According to him, the achievement of
this year will remain in the range of US$ 200 million. This is caused by the
depreciation of the Rupiah against the US dollar could create stable export value,
despite a slight decline in volume.
Nevertheless, the export of Indonesian graphic products is small compared with

neighboring countries such as Singapore with exports worth US$1.66 billion,
Thailand US$1.6 billion and Malaysia worth US$330 million.
He regretted that the potential of Indonesia which is one of the largest paper
manufacturers in the world with national production capacity reached 12.9 million
tons per year. Of that amount, as much as four million tons is allocated for export.
We have the raw materials, from the plantations or trees planted by our own. We
want it printed here first, then exported. Moreover, we have the advantage of being
able to produce pulp more easily than subtropical countries, "he said.
All this time, graphics products that are widely exported, among others are textbooks
in foreign languages, wrapping paper, envelopes, notebooks, drawing books up to
scriptures. The export target is to the United States, Europe, Malaysia, Middle East
countries including Iraq and Afghanistan.
*CIC/i*

FIBER AND THREAD
1. OPTICAL FIBER DEMAND CONTINUES TO RISE
The use of fiber optics in Indonesian telco industry and the world continues to
increase every year, this is in line with the latest technological developments. Seeing
current condition, fiber optics industry now plays an important role in providing
significant added value for its supporting sectors.
Optical fiber manufacturers estimate demand of optical fiber in Indonesia reaches 8-

9 million kilometers per year and has the potential to double in short term following
the development of the construction of broadband network connections in the
country.
Some time ago, PT Yangtze Optical Fibre Indonesia (YOFI) officially operates first
optical fiber production center in Asean. Optical fiber produced by YOFI directly sold
out in the first day of operation. YOFI is a joint venture company between PT Yangtze
Optical Fibre and Cable or YOFC (70%) from China and PT. Monas Permata Persada
or MPP (30%) from Indonesia.
With a population of 252 million, Indonesia is the fourth most populous country in
the world. And in recent years, YOFI will take advantage of YOFC high technology
and local resources of MPP to be the most influential fiber suppliers in Indonesia and
the ASEAN region by making a contribution of local telecommunications. President
Commissioner YOFC, Jan Bongaerts said YOFC choose Indonesia as a production
base because cable industry in the country is much more developed than the
industry in other countries in Asean.
President Director of Yangtze Optical Fibre Indonesia, Chen Huixiong said total
capital investment in the early stages reached US$30 million. He is optimistic that it
can contribute the maximum so that people in Indonesia and ASEAN can enjoy the
great benefits of optical fiber communication.
With the operation of PT YOFI, the increase need for fiber optic cable is expected to
be supplied by domestic industry because it has been flooded with imported
products. In this regard, the Ministry of Industry will implement the mandatory SNI
rules for all fiber optic products in Indonesia.

President Director of PT Monas Permata Persada, Santoso said YOFI has gained a
buyer for the whole of production capacity, namely PT Jembo Cable Company Tbk
and PT Voksel Electric Tbk each of which will absorb 1.5 million kilometers. YOFI
plans to double production in 2017 to 6 million kilometers of optical fiber per year.
The production capacity is equivalent to the need of seven optical fiber cable
manufacturers in Indonesia. Santoso believes that the government will be very
supportive of this optical fiber project. Not only in Indonesia, optical fiber that is
produced in Karawang can also develop to the ASEAN market.
Santoso added YOFI is currently in negotiations to expand its land in Suryacipta

Industrial Estate. By the plan, the land will be the location of optical fiber cable
plant. "By plan, in 2017 we will increase production double to 6 million kilometers.
It's still 100% for Indonesia. Then go up to 8-9 million kilometers in the third stage
and at the four stage maximum at 12 million kilometers, "he said.
Directorate General for Industrial Resilience and International Industrial Access

Development (KPAII) Ministry of Industry, Harjanto, giving appreciation to PT YOFI
on the realization of investments in efforts to develop industry in Indonesia. He hopes
the new investment will be even greater in strategic industries sectors that will
contribute positively to the national economy. "In the second quarter 2016, the total
value of foreign investment in Indonesia reached US$8.01 billion, an increase of
49.11 percent over the same period in 2015," he said.
Revealed by Director General of Metal, Machinery, Transportation Equipment, and

Electronic Industry Ministry, I Gusti Putu Suryawirawan, the presence of YOFI make
the level of domestic components of fiber optic cable industry could reach 50%. The
increase in DCL make the cable industry in Indonesia could follow the program
Increased Use of Domestic Production (P3DN).
The program stated that government institution and State-owned companies are
required to use product with more than 40% local content. "This is the first optical
fiber plant and needs to be appreciated. We will later proceed with compulsory SNI
so that imported products must meet the standards in Indonesia, "he said.
*CIC/i*

INDUSTRIAL GAS
1. GOVERNMENT STRIVE TO GIVE GAS INCENTIVES TO FACTORIES IN

INDUSTRIAL AREA
The Government through the Ministry of Industry (Kemprin) are working to make the
domestic industry get cheap gas prices, this is done at the same time to lead them to
relocate their factories to the industrial area.
Ministry of Industry (Kemprin) in its latest proposal calls low gas price will apply to
all industries that build factories in the industrial area may enjoy the discounted
price of gas. It seems to add to a long line of Kemprins proposals.
Earlier in the Presidential Regulation No. 40/2016 mentions there are seven
industrial sectors that gain reduction in gas price. Those industries are industry of
fertilizers, petrochemicals, oleochemicals, steel, ceramics, glass and rubber gloves.
However, the Minister of Industry Airlangga Hartanto proposed pulp and paper
industry, food and beverages, textiles and footwear and tires also got low gas price.
Of course, this proposal adds to the number of industries that will get gas prices
reduction. "We want when the industry get into industrial estates, gas price is
cheaper so that their products can compete," he said.
According to him, this policy is aligned with the General Plan for National Energy
(REUN). Namely, the price of gas becomes construction capital, capable of the rolling
additional effect or multiplier effect. Kemprins desires to bring the plant into an
industrial area, Airlangga said, to create efficiencies, improve productivity and
innovate. If those three things reached, Kemprin optimistic the competitiveness of
domestic industries could increase.
Director General of Industrial Zoning Development, the Ministry of Industry, Imam

Haryono said decline in gas pric is one way to cut production costs and raw material
costs. Imam exemplifies gas prices in Semangke Industrial Estate in 2015 reached
US$ 16 per mmbtu. This complicates the industry in that area. Within the
calculation of Kemprin, currently the use of gas by domestic industry reached 505.14
million mmbtu.

Currently, majority of industries still pay for gas at prices above US$12 per mmbtu.
Industrial players hope the government can lower gas prices to US$4 - US$5 per
mmbtu. Chairman of Industrial Estate Association (HKI) Sanny Iskandar assessed
decline in gas prices for industries operating in the industrial estate is a common.
With the calculation of gas price of US$4-US$5 per mmbtu, Sanny believes the
industry in the country will be able to compete with producers from neighboring
countries. "The industry requires stability price that is competitive compared to gas
prices in the ASEAN region," he said.
Still Can Not Be Enjoyed
On the other hand, in fact, up until now the governments plan to give discount on
gas price for industrial players to ease their burden in facing global and national
economic slowdown through the issuance of Economic Policy Package Volume III yet
can be enjoyed. Although these packages have been issued since nearly a year ago,
there are still many issues that block gas price reduction.
Teten Masduki, the Chairman of the Working Group for the Acceleration and
Completion of Regulation, Task Force of Acceleration Package of Economic Policy,
said the problem was triggered by the establishment of the implementing rules
package that until now has not been completed.
Satya Bhakti Parikshit, Advisor to the Cabinet Secretary who is also the Secretary of
the Working Group II, he said, one of the rules regarding the establishment plan
governance bodies on new natural gas to implement the package. Besides the
problem was also triggered by the vacancy position of Energy and Mineral Resource
Minister. It made the discussion inhibited.
Actually, the government has provided incentives to industry to face global and
national economy slowdown that is currently happening. One of the incentives given
by the government is a reduction in gas price for industry groups that became
effective January 1, 2016.
In 2020, the government estimates that the use of gas in the country could reach
621.71 million mmbtu. Of course, news of cheap gas price incentives for industries
operating in the industrial area is quite a relief the manager of the industrial area.
But the problem is, until now gas price still hung verdict and Energy and Mineral
Resources Ministry has not given a decision.
*CIC/i*

OTHER CHEMICALS
1. FARMERS ASKED THE GOVERNMENT TO STOP THE IMPORT OF RAW SUGAR
The sugarcane farmers reject government's decision to assign Bulog to import raw
sugar. The import is considered to be too large by farmers, potentially dropping the
price at the farm level. As is known, the government re-assign Bulog to import
267,000 tons of raw sugar to be processed into consumed sugar.
The processing is carried out by the refined sugar factories and the results will be
used for market operations to suppress the price of sugar. Bulog said has cooperated
with 5 refined sugar factories and expect the price of sugar can be stable at
Rp12,000 at the consumer level.
The general secretary of the National Executive Board Leading Indonesian Sugar
Cane Farmers (DPN APTRI) M Nur Khabsyin say the more troubling is such imports
of raw sugar are done in harvest season so it is very detrimental to farmers.
According to him, the auction price of Rp11,000 almost reach the production costs
(BPP) of sugar cane farmers namely Rp10,600. DPN APTRI worries if later there is a
risk of refined sugar to enter the traditional market.
Nur said the purpose of import of sugar is for stabilizing prices though assessed
inappropriate. The price of sugar is currently still fairly reasonable. If used for
backup, Nur assessed this decision is not appropriate given the milling season is not
finished yet so there are no exact figures of sugar production this year.
Nur said that he worries decrease in sugar prices on an ongoing basis as a result of
the import plan both for consumption as well as raw sugar. It is feared, what
happened in 2014 will be repeated at this point. "In 2014, the auction price of
farmers sugar fell below HPP of Rp8,500 per kilogram, at that time of auction the
price was at the range of Rp7,400 per kilogram," he said.
According to the DPN APTRI, sugar production this year is expected at 2.4 million
tons and consumed sugar demand is 2.7 million tons. On the other hand, total
import license of raw sugar and consumed sugar reached 1.12 million tons, thus it is
potentially flooding the market.

Nur said, indeed the realization of import license has not been fully completed, but
already has an impact on the auction price for sugar. The government is expected to
review raw sugar import permits for industry and for consumption.
Therefore, it has asked the Minister of Trade for strict monitoring of the distribution
of refined crystal sugar and give strict punishment to the refined sugar producers
that seeps into the consumer market. Based on data from Monitoring Systems
Market Necessity (SP2KP) of the Ministry of Commerce, the average price nationally
for sugar reached Rp15,992.74 per kilogram.
Therefore, he has asked the Minister of Trade for strict monitoring of the distribution
of refined crystal sugar and gives strict punishment to refined sugar producers that
seeps into the consumer market. Based on data from market monitoring system to
basic needs (SP2KP) of the Ministry of Trade, the average price nationally for sugar
reached Rp15,992.74 per kilogram.
This price is slightly decreased compared to the previous week amounted

Rp16,168.65 per kilogram. While the government claimed that the price of sugar
should be in normal condition is at a maximum range of Rp12,000 per kilogram.
Government Defends Bulog
The government actually has reason for assignment of raw sugar import to Bulog
aims to shorten the distribution chain. Deputy for the Food and Agriculture
Coordinating Ministry for Economy (CMEA), Musdhalifah Machmud explains the
import of sugar for consumption, which was centered in Bulog will facilitate the
arrangement of stock.
Thus, when the price of sugar is high in retail markets, Bulog can immediately fill
the areas that are supply shortages. According to him, the decision was made at a
food coordination meeting at CMEA in about one or two months ago.
Meanwhile, about Bulog that does not have manufacturer importer identification
number (API-P), according to Musdhalifah it is not be a problem because the legal
framework used is the Presidential Regulation No. 48/2016. The regulation states
that the government may assign Bulog to maintain the availability and stability of
sugar prices.

On the other hand, the Minister of Trade Regulation No. 117/M-DAG/PER/12/2015

on Regulation on Sugar Imports said raw sugar imports can only be done by the
owner of API-P. Meanwhile, Bulog only has general importer identification number
(API-U).
Previously, import quota of raw sugar of PTPN and RNI reached 267,000 tons shifted
to Bulog. Such allotment is part of imports allocation of 381,000 tons which were
given to four PTPNs and RNI by SOE Minister Rini Soemarno last May.
President Director of PT Rajawali Nusantara Indonesia (Persero) or RNI Didik

Prasetyo said RNI and four PTPNs, the PTPN IX, X, XI, and XII, only get quota of
114,000 tons and the remaining 267,000 tons delivered to Bulog. He explained the
quota of RNI and PTPN was reduced for adjusting the milling capacity until the end
of 2016. As a result of import approval letter that was never published, the Ministry
of Trade, capacity of RNI and PTPN is limited due to coincide with the peak of sugar
cane milling.
Another source who knows the information, said the transfer is done through a final
letter of Minister Rini to PTPN X. Originally, Rini only split the import of 381,000
tons into two stages, namely 114,000 tons in the first phase and 267,000 tons in the
second stage. The split was contained in a second letter following the letter of the
Minister of SOEs No. S-288/MBU/05/2016 on Raw Sugar Import Permits 2016.
Later, the third letter present, which contains the transfer of 267,000 tons of raw
sugar imports owned by PTPN and RNI to Bulog.
As a result of the transfer of import to Bulog, RNI only gained quota of 16,000 tons
from initially 100,000 tons. A total of 10,000 tons will be processed in PT PG
Rajawali I (PG and PG Krebet Rejoagung), whereas 6,000 tons in PT PG Rajawali II
(Jatitujuh PG, PG Subang, Sindanglaut PG, and PG Tersana Baru). The remaining
98,000 tons are allotted of PTPN IX, X, XI, and XII. The whole processed of that raw
sugar later will be sold to Bulog.
*CIC/i*

2. LOCAL STEEL INDUSTRY CALLS FOR THE ATTENTION FROM THE

GOVERNMENT
The national steel business players hope the government can give more attention and
protection for local steel players and to ensure its products are absorbed by domestic
demand. The industry assesses certainty regarding the protection of local players
considered more urgent because imports continue to depress domestic steel.
Steel industry players expect the use of steel and concrete in the country can be
increased to respectively 50% in government infrastructure projects in order to
increase the absorption of national steel. Commission members of Standard and
Certification of Iron and Steel Industry Association of Indonesia (IISIA) Bimakarsa
Wijaya said that most of governments projects volume is still dominated by cement
and mixtures while steel components is still below 10% of the total budget.
Although Bimakarsa can not mention the absorption of steel semester I/2016,
according to data from the Ministry of Public Works and Public Housing (PUPR), the
estimated expenditure of steel in 2016 the highest occurred in July-September,
reaching 386,647 million tons.
Ministry of PUPR budgeted around Rp101.1 trillion for expenditure of material, such
as asphalt, cement, steel, precast concrete and heavy equipment. The total spending
plan of steel in 2016 is 1.38 million tons. Currently, the government has begun to
increase the use of steel and concrete to respectively 50%.
International Relations Director Indonesian Iron & Steel Industry Association (IISIA)
Purnomo Widodo said due to the current procurement system is mostly done by
contractors or engineering procurement construction (EPC), the absorption of
domestic steel is not optimal because they prefer to use lower-priced imported steel.
According to him, EPC contractors have the authority for planning, procurement,
and installation of material at once. It was considered to be a loophole for contractors
not to use local pipeline because there is no provision which binds the contractors to
use a particular product.
He added that now many countries assign protection to protect domestic industry
from imported steel. He pointed out that Thailand has implemented technical barrier
through the Thailand Industrial Standard (TIS) that is very tight so not many
companies can register.

However, he considers that the protection applied by the government has not quite
hit the steel industry, when many countries in Asean have implemented protection to
their steel. "Malaysia applies import license liasion so the permit is tightened.
However, SNI is still not effective as it is easy to apply for and many China industries
already have SNI, "he explained.
Meanwhile, Executive Director (IISIA) Triseputro Hidayat said that in order to attract
investment in steel industry, the government should emphasize on providing
protection to local products. "Certainty market protection with import disorder is a
top priority to encourage investment, in addition to other regulations such as the
price of gas, electricity, bank interest, SNI, and increased use of domestic products
(P3DN)," he said.
Hidayat adding higher domestic consumption led to the increase in steel imports. He
cited China's total steel exports to the rest of the world reached 112 million tons,
about 32 million tons to Asean, and about 7 million tons to Indonesia.
Previously, the Ministry of Industry has conducted a study to apply anti-dumping

duties on hot rolled coil (HRC) and cold rolled coil (CRC) steel, one of which is from
China. According to data from the Ministry of Industry, imports of steel from January
to March this year has reached 3.69 million tons.
The data from the Central Statistics Agency (BPS) said imports of iron and steel by
HS code 72, its value has reached US$3.3 billion in January-July 2016, down by
10.32% over the same period in 2015.
Meanwhile, data from the Ministry of Industry said that this year national steel
consumption is expected to reach 16 million tons by counting steel scrap demand of
3 million tons. Meanwhile, total production in the country is only 7 million tons.
Minister of Industry Airlangga Hartanto said country like South Korea is committed
to continue to invest in steel sector in the country, one of them with the plant of
expansion of PT Krakatau Posco, joint venture company with Krakatau Steel which
expected to reach 10 million tons in 2025. He also added that currently there are
around 200 companies nationwide steel industry upstream and downstream that is
active in Indonesia. Entirely absorbs more than 350,000 manpower and has a direct
production utilization below consumption.

In addition, there are two steel producers, namely PT. JFE Steel Galvanizing
Indonesia and PT. Sunrise Steel began to realize investments worth US$350 million
in order to meet high demand of domestic market.
President Director of PT Sunrise Steel, Henry Setiawan said the first plant line
initially has a production capacity of 260,000 tons per year. On the new line, which
began construction in the second half of this year will have a production capacity of
140,000 tons per year, so in 2018 Sunrise Steel will produce coated steel of 400,000
tons per year. "The addition of this second line requires an investment of US$50
million, and is part of our commitment to support the improvement of national steel
production," he said.
*CIC/i*
3. INDONESIA WILL BUILD THE LARGEST SYNTHETIC RUBBER PLANT IN ASIA
Recently, the government through the Agency of Batam has permitted the
construction of refinary of synthetic rubber raw material of special types namely
treated distillate aromatic extract worth Rp1.3 trillion. Refinery TDAE (Treated
Distillate Aromatic Extract) to be the first in Indonesia and the biggest in Asia.
Coordinating Minister for Economic Affairs Nasution said first investment came from
PT. Enerco RPO and PT. Kabil Citanusa, worth US$98 million or equivalent to Rp 1.3
trillion. Nasution said optimistic this first investment will be followed by other
investments.
Through Easy Investment Direct Construction (KILK) program, BP Batam will

facilitate all necessary permitting process needed by Enerco in order to begin
construction of the refinery of treated distillate aromatic extract (TDAE), main raw
material for synthetic rubber and tire industry. On the construction period, the
process to obtain the document by Enerco will still be running.
Darmin said Batam has long been waiting for the emergence of investors after so long
not attractive for investment. With the establishment of BP Batam, he believes Batam
will be more attractive both in terms of infrastructure and ease of investment
licensing. "The government fully supports BP Batam to make changes to the licensing
procedures as well as in ensuring the infrastructure facilities," he said.

TDAE refinery will be built in Kabil integrated industrial area on an area of 2.3
hectares. In construction, Enerco is working with several companies, including the
fulfillment of the supply of raw materials will be obtained from ExxonMobil. In
addition, geographically, location of the refinery is claimed very strategic where there
is tanker fleet directly from Batam to other parts of Indonesia and export
destinations to Singapore, China, Korea, Japan and India.
Darmin added that when the construction process underway, government will
prepare the logistics system to support the smooth distribution of TDAE products to
meet the needs of rubber and tire industry. The refinery is designed with a
production capacity of more than 100 thousand tons per year of TDAE.
Total project investment is equivalent to US$98 million consists of investment costs

and working capital. The technical work has been done since October 2015 so that
the procurement of goods and construction is scheduled for completion by the end of
2017.
Hendro Sutandi, Commissioner of PT Enerco RPO lnternational, said the refinery will
produce oil under environmentally friendly process and meet health requirements
(non-carcinogenic) namely Rubber Process Oil (RPO) of type TDAE that will be used
as a raw material for the manufacturing of High Performance Tyre.
"In addition to tightening the rules on material of process oil (RPO) that contain
carcinogens, globally also have been attempt the tightening of emission by saving fuel
in passenger cars that still use the type and quality of slander tires," he said.
Head of BP Batam Hatanto Reksodipoetro said the construction of TDAE refinery is

the success to the efficiency of the licensing process of investors. In addition, more
conducive investment climate also supported the development of infrastructure,
especially ports and airports.
Related to land, he explained interested investors who want to invest in Batam

should bring clear business concept to acquire the desired land. After that, investors
can deposit the down payment of 10% of the total investment of required land. "I
worked hard for two things, increase efficiency in the licensing process for
businesses and also land. And we also wanted to show to investors that BP Batam is
not only efficient but also conducive, "he said.
*CIC/i*

4. LEVY IS TOO HIGH, INDONESIA CPO EXPORTS PLUNGED
Because the export levy is too high, Indonesian CPO exports dropped 18.9% in the
first half of 2016 to US$ 7.9 billion compared to the same period last year of US$ 9.8
billion. Hence, the Ministry of Industry urged that the CPO export levies to be
reduced from US$ 20 per ton to US$ 5 per ton.
Not only that, the result of too high levy according to Director General of Agro
Industry Ministry Panggah Susanto has affected the decline in export performance of
food and beverage industry in the first half of 2016. Panggah said the Ministry of
Industry is currently reviewing the levy rate reduction to an appropriate level. "It
should be lowered, as exports dropped production fell US$20 per metric ton was too
high," he said.
This means that the levy still can be done, but also still able to encourage export of
industries and industry in the country can grow and thrive. Panggah said into
consideration that the levy that could be lowered is the international price of CPO,
BPDP funding requirements and industry's capacity utilization.
Levy of funds plantation made downstream products of Indonesia CPO less

competitive in the international market. Cooking oil factories and biodiesel reduced
their production volume due to the difficulty to penetrate the export market. Cooking
oil and biodiesel products of Indonesia are less competitive compared to similar
products from Malaysia which is released at a lower price.
According to the Head of the Indonesian Palm Oil Producers Association (Gapki), the
value of CPO exports (crude palm oil/crude palm oil) Indonesia throughout 2015 only
reached US$18.64 billion, down 11.2% over the previous year US$ 21 billion.
Chairman Gapki Supriyono Joko explained last year Indonesia's CPO production
reached 32.5 million tons. Of that amount, 26 million tons of CPO exported with a
estimated value at US$18.64 billion. "Indonesia's CPO export value last year already
equaled the oil and gas, which over the years becomes our mainstay commodities. A
few more years, I am confident that it can go beyond, "he said.

According Gapki, 2015 was a challenge year by oil palm industry, ranging from
global CPO prices that were not enthusiastic until the fire case on oil palm
plantations. Monthly average price in global CPO throughout 2015 was not able to
reach US$ 700 per metric ton. So throughout the year automatically exports of CPO
and its derivatives were not subject to export duty for CPO average price below
US$750 per metric ton which was the minimum limit of the imposition of export
duty. The average price of CPO in 2015 only was at US$ 614.2 per metric ton.
Average prices have dropped by 25% compared to the average price in 2014 of US$
818.2 per metric ton.
The fall of global CPO prices can not be separated from the effect of the fall of crude
oil prices that had fallen to US$30 dollars per barrel, which then affect the prices of
other commodities. China's slowing economic growth and stagnation in Europe also
factored to declining of global CPO prices.
India, the EU countries and China are still the largest importers of palm oil from
Indonesia. Throughout 2015, the volume of Indonesian CPO exports to India reached
5.8 million tons, up 15% compared to last year's 5.1 million tons. While Indonesia's
CPO exports to EU countries reached 4.23 million tons an increase of about 2.6%
compared to last year's export volume. China surprisingly recorded a rise in demand
for palm oil throughout the year 2015 by 64% or from 2.43 million tons in 2014
increased to 3.99 million tons in 2015.
*CIC/i*
5. ANTI-DUMPING STEEL WIRE RODS DISADVANTAGED THE INDUSTRY
The government is asked not to give permission for anti-dumping petition requested
by major companies nationwide, the manufacturer of steel wire rods. If permission is
granted, thousands of manpower in the downstream industry are threatened to be
laid off.

Chairman of Cluster Wire and Nails Indonesian Iron and Steel Association (IISA) Ario
N. Setiantoro said some his members namely the factories of wire products have
been laying off up to 1,000 employees. The reason is because some wire factories of
small and medium-scale in downstream industry is no longer obtain supplies of raw
material of steel wire rods from local factory.
Not only has the potential to increase the action of laying off employees, Ario revealed
some companies with foreign direct investment (FDI) began to assert to leave from
Indonesia. Some of the FDIs came from Belgium, Taiwan, and Japan.
Ario worries if later the Ministry of Trade decided to keep anti-dumping on imports of
steel wire rods from China, would be increasingly restrict the supply of such raw
materials. As information, steel wire rods are used as raw materials of wire products,
nuts, bolts, bars of bicycle, up to seven interlace wire. Those products are used for
construction and automotive industries.
Currently, the need of wire rods in the downstream industry reaches 2.5 million
tons, while production in the country is only able to produce wire rods of 1.5 million
tons. Some producers of wire rods in the country, among others PT Master Steel
MFC, PT Gunung Garuda, PT Ispatindo, and PT Krakatau Steel but the production of
those four companies still can not meet demand of wire rods in the country.
In addition, producers in the upstream are also considered not capable of providing
high-carbon wire rods. Companies in the upstream are mentioned only have the
capacity to produce low-carbon wire rods that are not efficient. Meanwhile, demand
for high carbon wire rods is more requested by the manufacturers that produce nuts,
bolts, and PC wire.
Since last year, governments protection on the producers of wire rods has been done
many times. For example, the government has imposed a safeguard for low-carbon
wire rods. By doing so, the factory which produces regular wire to consume locally
manufactured wire rods.

Other protection is by including the raw material in Lartas (prohibited and/or

restricted) list. The goal is that the government can monitor the importer who is the
manufacturer or simply as a merchant for resale. However, Ario considered that this
protection is only as a temporary barrier. Because the upstream industry does not
have qualified capacity to meet the needs of downstream industries. Currently
downstream industry has about 50 wire processing plants with 40,000 employees.
Each year, the industry is able to record export value of US$150 million.
In addition, the value added tax resulting from downstream industry is also
mentioned to have reached 4 trillion annually. "We are also contributing taxes and
export value, we also contribute to infrastructure projects and our products are
certified. So we ask our government to also pay attention to us, especially when
seeing national interest direction, "said Ario.
Some time ago, the Indonesian Anti Dumping Committee (KADI) started anti-
dumping investigation on imports of steel wire rods from China. Indonesian
Antidumping Committee (KADI) immediately reacted seeing the rise of imports of
steel wire rods. They investigated the potential selling practice at a cheaper price
abroad (dumping).
Chairman of the Indonesian Antidumping Committee (KADI) Ernawati explained that

the investigation began on August 31. The committee considered that the
investigation urgently needed because the circulation is already oversupply. It
affected the price of similar products of local industry.
Based on data from the Ministry of Trade, the total imports of steel wire rods
Indonesia reached 591,061 tons. About 85 percent or 502,274 tons came from
China. Every year national steel demand grows 3-7 percent.
In addition to steel wire rods KADI is also investigating alleged dumping on imports
ceramic raw material namely frit. Anti-dumping investigation on imported goods of
frit, made on the petition filed by industrial representatives of local frit products to
KADI, PT Ferro Mas Dinamika and PT Colorobbia Indonesia.

As of last year, total imports of frit to Indonesia reached 127,060 tons. Meanwhile,
imports from China, which allegedly dumping, reaching 103,809 tons, accounting for
82% of total imports of frit of Indonesia.
*CIC/i*
6. THIS YEAR THE TARGET OF PLASTIC CONSUMPTION IS EXPECTED TO FALL
Olefin, Aromatic and Plastic Association of Indonesia (Inaplas) predicts, the growth of
plastic demand will weaken this year. The use of plastic until the end of the year is
projected to stagnate or slightly rise compared to previous years.
Vice Chairman of Inaplas Budi Susanto said this year he lowered the target of
consumption to 4.6 million tons from the previous target of 4.75 million tons. Last
year, the realization of plastic use nationwide reached 4.5 million tons.
Budi explained that the decrease in plastics industry has been felt since the first half
of 2016. The impact of the decline increasingly felt as the government issued paid
plastic bag policy and discourse on imposition of paid plastic customs.
He explained that plastics market growth this year is the lowest in the last five years.
Indeed, there is increase in the growth of plastic food and beverage industry.
However, the increase is off the expected target. "Should the demand of plastic for
food and beverage industry could rise to 5%, but in fact the rise was only by about
3%," explained Budi. Just so you know, 40% of the national plastics consumption
used for food and beverage industry.
According to Budi, actually theoretically growth of plastics industry is above the

economic growth of 1 percent. However, because of budget absorption fairly slow,
thus the growth of plastics industry also felt the impact.
However, Budi remains optimistic that government spending realization and

stimulus of funding coming in through tax amnesty program could make plastic
consumption increase in the second half of this year. "Two weeks after Lebaran it
dropped and then rises again. However, after it dropped the rising went slowly and
will be higher at the end of the year. The hope is that the government to be more
consistent in disbursing the budget until the end of the year, "said Budi.

In 2015 the growth of plastics industry was in the range of 4.5 percent. With the
optimism of government in early 2016, plastics industry dared to put its growth
target at 4.6 percent figure. But due to the existence of obstacle related to discourse
on excise of paid plastic bags, the growth of plastic industry is slowly declining.
Other plastics demand comes from household industrial sector 20%. Demand of
plastics for automotive needs, building materials ranging from 15%, then the
agricultural sector around 10%. Of the many segments of that plastic users, the
market segment for agriculture is the one that has the opportunity to grow the
highest.
Budi argued plastic demand for agricultural is not only for sack manufacture, but
also for packaging of fertilizers, seeding, crop tarps, rice bags and other necessities.
As for demand of plastics for automotive sector, Budi said not showing any signs of
the rising.
Managing Director of Messe Dusseldorf Asia, Gernot Ringling, said there are
currently 4,000 companies engaged in plastics processing business in Indonesia and
in total scored an average production growth of 10%. He said the production of
plastics will continue to grow along with the growth in the consumption of processed
food and beverage and other consumer products in Indonesia. Indonesia also has the
potential to become the center of the industrial production of plastics in Asean that
are projected to be the world's fourth largest economic region by 2035.
Ringling said one proof of the potential of Indonesia plastics industry is the interest
of foreign companies in participating in the industry exhibition in Indonesia.
Approximately 60% of the 400 exhibitors in the exhibition of Indoplas, Indopack, and
Indoprint in Jakarta are international companies from 20 countries including
Germany, South Korea, and Turkey.
*CIC/i*

BRIEFF NEWS
THE AUCTION OF 14 OIL AND GAS BLOCKS IS STILL SLOW ANTHUSIASTS
Ministry of Energy and Mineral Resources (ESDM) announced the auction of 14

working areas of oil and gas this year in May. The auction consists of seven oil and
gas blocks of direct offers and seven regular oil and gas blocks that turned out to has
only few enthusiasts. The definition of direct offers is, oil and gas contractors can
immediately pinpoint oil and gas blocks to be worked. While at regular auctions,
government offers oil and gas blocks to investors. Tunggal, Director of Upstream Oil
and Gas Ministry of Energy and Mineral Resources, said from the scheme of direct
offer, there are three oil and gas blocks that are not in demand. The third blocks are
block Kasongan Sampit, Block Ampuh and Block Bukit Barat. While the oil and gas
blocks that have been in demand are Block West Kaimana, Block Onin, Block Ebuny
and Blok Batu Gajah. Block auction took place in July 18 31 August 2016.
Meanwhile, auction of regular seven oil and gas blocks take place from 18 July to 28
October 2016. Auction of oil and gas blocks, consisting of Blocks South CPP,
Suremana I, Oti, Manakarra Mamuju, SE Mandar, North Argunim, and Kasuri II are
also still low enthusiasts, because there is no company that take tender documents.
Bisnis.com
WORKING ON MASELA, INPEX AND SHELL ARE GIVEN NEW INCENTIVES
Masela block project with the onshore scheme or development of LNG plant onshore
will not be able to run if no special incentives from the government. For that the
government is ready to provide special incentives for the Masela block project.
Coordinating Minister for Maritim field and Acting Minister of Energy and Mineral
Resources (ESDM), Luhut Binsar Pandjaitan said the government will provide
incentives to Inpex Corporation and Shell Indonesia as the project contractors of
Masela block such as the extension of contract period. In addition, Luhut also says
government is considering providing for the profit sharing to be more dynamic
because the location of oil and gas wells is located in deep sea. Based on the
assessment, profit sharing between the government and Cooperation Contract
Contractors (PSC) in the Masela block can be 60% : 40% of which 60% for the
government and 40% for the contractor or by 70% : 30% respectively. Meanwhile, to
increase production capacity of the LNG plant that will be built, it has not been
discussed between the government and contractors of that block. Kontan.co.id

SEMEN BATURAJA RETURNED TO HANDLE THE PROJECT IN SUMATRA.
Infrastructure projects in Sumatra gave blessing for PT Semen Baturaja Tbk (SMBR).
Corporate Secretary of PT Semen Baturaja Tbk Zulfikri Subli said last July, he
received a new project in the province of Jambi. Zulfikri said he supplied cement for
road projects in Jambi. Previously, some projects in Sumatra that use cement
Baturaja are the LRT project development, OKI Pulp & Paper plant construction,
Hydropower (PLTA) Way Semangka Project and OPI Mall Jakabaring Project. "The
construction of Light Rail Transit (LRT) project has been running," said Zulkifri. This
year, SMBR budgeted capital expenditure of Rp 2.3 trillion. Until the first half of
2016 has absorbed Rp 10 billion for the subsidiary and Rp 43.3 for regular
investment and Rp 1.43 trillion for the construction of cement plant Baturaja II
which is planned to be operational in 2017. "Progress of plant construction has
reached 66%," Zulfikri added. To anticipate the surge in demand for cement, Semen
Baturaja will maximize production up to 1.75 million tons this year. Their plants
installed production capacity reaches 2 million tons of cement per year. Kontan.co.id
APP ENTERED AS 17 SUSTAINABLE COMPANIES.

Affairs of environmental conservation have become the world's attention today. Each
company vying to claim as a company that meets the criteria of sustainable
environmental development. One of them is Sinarmas Group, Asia Pulp & Paper
(APP). The company is considered to meet the criteria of sustainable environmental
development of the United Nations Private Sector Forum was held on the Climate
Week 2016 from September 19 to 25. DNV GL report, entitled Future of Spaceship
Earth - The SDGs - the Business Frontier published on 19 September 2016 to
initiate UN Private Sector Forum. The report examines the progress of 17 UN
sustainable development targets and gave rating of 17 examples of global companies
that are able to meet the UN target. According to Managing Director Sustainability
Program of APP, Aida Greenbury, APP is challenged to use natural resources in a
sustainable manner and achieve business growth in Indonesia. Kontan.co.id
*CIC/i*

No. 539 October 2016 INDOCHEMICAL - 1L
APPENDIX
1. DEVELOPMENT OF CHEMICAL MATERIALS EXPORT IN INDONESIA JAN- DEC 2015
Destination of JAN - DES

HS Description
Country
Value (USD) Value (USD)
1805000000 Cocoa powder,not containing add sugar or other sweetening Ukraine 486,700 872,195
matter
1805000000 Cocoa powder,not containing add sugar or other sweetening Latvia 85,000 92,756
matter
1805000000 Cocoa powder,not containing add sugar or other sweetening Estonia 1,171,200 2,824,527
matter
1805000000 Cocoa powder,not containing add sugar or other sweetening Georgia 17,000 22,265
matter
1805000000 Cocoa powder,not containing add sugar or other sweetening Croatia 50,500 49,346
matter
1805000000 Cocoa powder,not containing add sugar or other sweetening Bosnia And 51,000 61,540
matter Herzegovina
1805000000 Cocoa powder,not containing add sugar or other sweetening Rep. Of Macedonia 159,500 103,820
matter
1805000000 Cocoa powder,not containing add sugar or other sweetening Russia Federation 1,570,900 2,950,861
matter
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Hong Kong 1,027 6,285
1806100000 Cocoa powder,containing add sugar or oth sweetening matter China 18,710 24,401
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Papua New Guinea 15 101
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Thailand 2 3
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Singapore 15,145 24,787
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Philippines 34,438 44,480
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Malaysia 48,059 66,005
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Maldives 249 746
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Saudi Arabia 4,105 35,931
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Kuwait 3,117 20,559
1806100000 Cocoa powder,containing add sugar or oth sweetening matter United Arab Emirates 750 4,958
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Qatar 584 3,857
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Bahrain 43 285
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Kenya 72 430
1806100000 Cocoa powder,containing add sugar or oth sweetening matter New Zealand 763 10,509
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Tonga 290 822
1806100000 Cocoa powder,containing add sugar or oth sweetening matter East Timor 3,091 1,769
1806100000 Cocoa powder,containing add sugar or oth sweetening matter United States 765 6,571
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Guyana 2,043 10,395
1806100000 Cocoa powder,containing add sugar or oth sweetening matter France 8 123
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Germany, Fed. Rep. 4,560 56,522
Of


HS Description
Country
1806100000 Cocoa powder,containing add sugar or oth sweetening matter Finland 365 3,068
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Japan 280 978
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Hong Kong 162,630 547,892
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Korea, Republic Of 957,085 2,558,873
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Taiwan 109,364 271,632
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg China 244,202 753,408
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Thailand 2,091,136 4,513,895
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Singapore 407,581 1,075,003
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Philippines 722,511 2,361,030
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Malaysia 947,639 2,280,908
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Myanmar 44,237 122,051
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Brunei Darussalam 27,920 78,715
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Viet Nam 106,871 285,122
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Maldives 1,355 7,306
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg India 146 690
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Pakistan 6,524 19,544
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Bangladesh 19,257 35,639
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Saudi Arabia 12,000 20,945
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Kuwait 92,395 221,930
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Yemen 31,920 60,710
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg United Arab Emirates 377,522 874,096
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Qatar 27,977 71,826
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Bahrain 6,084 20,077
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Ethiopia 24,131 66,232
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Tanzania, United 57,720 118,460
Rep. Of
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg South Africa 60 612
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Australia 31,739 118,124
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg New Zealand 582 3,770
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Tonga 136 1,622
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg East Timor 19,505 46,479
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg United States 6,992 55,027
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg United Kingdom 120 848
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Netherlands 3,516 27,337
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg France 2 31
1806201000 Chocolate confectionary in blocks, slab/bars,weight>2kg Germany, Fed. Rep. 246 1,672
Of
1806209000 Other chocolate, liquid,paste,granular/oth bulk Japan 10 30
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Hong Kong 10,440 39,419
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Korea, Republic Of 11,201 25,797
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Taiwan 4,418 9,501


HS Description
Country
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk China 21,587 69,129
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Papua New Guinea 32,542 86,259
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Singapore 6,249 24,308
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Philippines 4,660 10,821
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Malaysia 21,401 49,420
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Myanmar 82,858 276,602
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Viet Nam 14,471 58,398
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk India 440,216 1,593,203
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Pakistan 29,699 158,373
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Bangladesh 31,431 215,559
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Saudi Arabia 14,674 79,423
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Israel 240 800
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Kuwait 53,836 219,197
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Yemen 35,196 84,568
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Oman 3,889 16,555
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk United Arab Emirates 90,003 326,699
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Bahrain 540 1,850
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Ethiopia 14,400 35,280
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Madagascar 4,191 10,875
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Cameroon 14,544 42,743
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk South Africa 115 618
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Mauritius 3,820 10,307


HS Description
Country
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Australia 3,131 27,500
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk New Zealand 496 5,009
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Fiji 11,002 27,333
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Solomon Islands 14,040 40,300
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk East Timor 47,426 151,104
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk United States 6,906 73,734
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Canada 4 13
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Mexico 5,600 14,000
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Netherlands 1,500 10,035
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Finland 120 3,401
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Greece 68 1,226
form,packing>2kg
1806209000 Other chocolate, liquid,paste,granular/oth bulk Armenia 3,360 7,570
form,packing>2kg
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Japan 6 14
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Hong Kong 5,982 35,603
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Korea, Republic Of 43,829 174,681
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg China 3,100 5,701
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Papua New Guinea 3,583 8,220
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Singapore 2,589 22,015
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Philippines 166,454 1,191,155
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Malaysia 4,482 35,906
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Brunei Darussalam 12,197 86,154
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Sri Lanka 16,443 12,280
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Saudi Arabia 22 20
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Australia 284 2,043
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Vanuatu 10,417 17,225
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg Solomon Islands 110 290
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg East Timor 320 2,460
1806311000 Filled chocolate confectionary in blocks,slabs,bars,weight_2kg United States 973 7,150
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Taiwan 945 4,470
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Papua New Guinea 170 417
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Maldives 120 812


HS Description
Country
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Bangladesh 39,288 206,612
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Kuwait 612 3,825
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg United Arab Emirates 7,272 25,146
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Madagascar 22,398 40,873
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg South Africa 60 575
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Australia 9,175 5,193
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Vanuatu 348 1,490
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Kiribati 159 974
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Samoa 27 133
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg Tonga 865 5,317
1806319000 Other chocolate,in blocks,slabs,bars,filled,weight_2kg United States 84 303
1806321000 Chocolate confectionary in blocks,slabsbars,not Hong Kong 492 1,631
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not China 11,672 59,317
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Thailand 39,774 94,578
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Singapore 389 3,208
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Philippines 14,292 64,085
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Malaysia 92,222 254,916
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Brunei Darussalam 12,441 60,480
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not India 7,398 225,278
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Pakistan 13,200 33,517
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Australia 3,420 13,442
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not Solomon Islands 278 685
filled,weight_2kg
1806321000 Chocolate confectionary in blocks,slabsbars,not United States 4,032 22,400
filled,weight_2kg
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Taiwan 57 341
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg China 6,999 76,446
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Papua New Guinea 28 110
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Singapore 15 112
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Malaysia 420,924 1,054,019
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Brunei Darussalam 13,271 49,300
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Viet Nam 53,874 164,092
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Saudi Arabia 224,556 654,226
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Kuwait 38,144 113,994


HS Description
Country
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Yemen 396 1,442
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg United Arab Emirates 337,225 1,123,972
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Bahrain 138,672 423,718
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Egypt 4,320 9,808
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Nigeria 292,028 717,791
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg South Africa 42,900 114,120
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Fiji 31,810 101,614
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Tonga 270 2,822
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Chile 1,440 6,312
1806329000 Other chocolate,in blocks,slabs,bars,not filled,weight_2kg Peru 212 1,005
1806901000 Chocolate confectionary in tablets orpastilles Japan 6,684 29,293
1806901000 Chocolate confectionary in tablets orpastilles Hong Kong 17,760 107,110
1806901000 Chocolate confectionary in tablets orpastilles Korea, Republic Of 30,782 193,354
1806901000 Chocolate confectionary in tablets orpastilles China 3,709 17,370
1806901000 Chocolate confectionary in tablets orpastilles Thailand 88,850 471,014
1806901000 Chocolate confectionary in tablets orpastilles Singapore 31,320 180,784
1806901000 Chocolate confectionary in tablets orpastilles Philippines 189,117 1,155,946
1806901000 Chocolate confectionary in tablets orpastilles Malaysia 60,100 242,087
1806901000 Chocolate confectionary in tablets orpastilles Cambodia 4,135 21,541
1806901000 Chocolate confectionary in tablets orpastilles Brunei Darussalam 26,655 136,860
1806901000 Chocolate confectionary in tablets orpastilles Maldives 16,837 86,658
1806901000 Chocolate confectionary in tablets orpastilles Yemen 1,500 1,500
1806901000 Chocolate confectionary in tablets orpastilles Nigeria 250,000 610,000
1806901000 Chocolate confectionary in tablets orpastilles Benin 272,600 674,000
1806901000 Chocolate confectionary in tablets orpastilles Australia 126 898
1806901000 Chocolate confectionary in tablets orpastilles Tonga 948 4,554
1806901000 Chocolate confectionary in tablets orpastilles East Timor 6,048 3,410
1806901000 Chocolate confectionary in tablets orpastilles Netherlands 23,808 55,800
1806903000 Food preparations of flour,meal,starch,malt extract, cont Singapore 1 24
40%_cocoa<50%
1806903000 Food preparations of flour,meal,starch,malt extract, cont Philippines 112,000 124,633
40%_cocoa<50%
1806903000 Food preparations of flour,meal,starch,malt extract, cont Malaysia 870 3,030
40%_cocoa<50%
1806903000 Food preparations of flour,meal,starch,malt extract, cont East Timor 80 70
40%_cocoa<50%
1806904000 Food preparations of head 04.01-04.04,5%_cocoa<10%,infant East Timor 35 75
use,not for retail
1806909000 Oth chocolate and food preparation contcocoa Japan 2 98
1806909000 Oth chocolate and food preparation contcocoa Hong Kong 426 11,630
1806909000 Oth chocolate and food preparation contcocoa Korea, Republic Of 1,521 40,401
1806909000 Oth chocolate and food preparation contcocoa Taiwan 226 971
1806909000 Oth chocolate and food preparation contcocoa China 223 637
1806909000 Oth chocolate and food preparation contcocoa Papua New Guinea 4,033 10,915


HS Description
Country
1806909000 Oth chocolate and food preparation contcocoa Thailand 238,363 923,112
1806909000 Oth chocolate and food preparation contcocoa Singapore 24,709 98,614
1806909000 Oth chocolate and food preparation contcocoa Philippines 587,485 1,479,625
1806909000 Oth chocolate and food preparation contcocoa Malaysia 31,226 44,815
1806909000 Oth chocolate and food preparation contcocoa Myanmar 2,376 3,134
1806909000 Oth chocolate and food preparation contcocoa Cambodia 65,043 99,128
1806909000 Oth chocolate and food preparation contcocoa Brunei Darussalam 3,080 6,678
1806909000 Oth chocolate and food preparation contcocoa Viet Nam 26,436 60,116
1806909000 Oth chocolate and food preparation contcocoa Maldives 404 24,507
1806909000 Oth chocolate and food preparation contcocoa Bangladesh 5,287 25,112
1806909000 Oth chocolate and food preparation contcocoa Sri Lanka 305 788
1806909000 Oth chocolate and food preparation contcocoa Saudi Arabia 1,188 1,416
1806909000 Oth chocolate and food preparation contcocoa Kuwait 19,240 58,222
1806909000 Oth chocolate and food preparation contcocoa Yemen 447,508 760,881
1806909000 Oth chocolate and food preparation contcocoa United Arab Emirates 39,898 114,758
1806909000 Oth chocolate and food preparation contcocoa Qatar 3,706 10,443
1806909000 Oth chocolate and food preparation contcocoa Bahrain 2,385 13,583
1806909000 Oth chocolate and food preparation contcocoa Madagascar 19,800 32,580
1806909000 Oth chocolate and food preparation contcocoa Kenya 17,473 24,481
1806909000 Oth chocolate and food preparation contcocoa Togo 19,404 33,075
1806909000 Oth chocolate and food preparation contcocoa Benin 40,392 66,198
1806909000 Oth chocolate and food preparation contcocoa South Africa 181,764 306,306
1806909000 Oth chocolate and food preparation contcocoa Mauritius 1,004 1,105
1806909000 Oth chocolate and food preparation contcocoa Australia 2,545 13,451
1806909000 Oth chocolate and food preparation contcocoa Vanuatu 1,161 8,244
1806909000 Oth chocolate and food preparation contcocoa Solomon Islands 986 3,803
1806909000 Oth chocolate and food preparation contcocoa East Timor 1,285 2,040
1806909000 Oth chocolate and food preparation contcocoa United States 45 77
1806909000 Oth chocolate and food preparation contcocoa Canada 644 3,017
1806909000 Oth chocolate and food preparation contcocoa Guyana 4,356 20,133
1806909000 Oth chocolate and food preparation contcocoa United Kingdom 50 1,500
1806909000 Oth chocolate and food preparation contcocoa Netherlands 1 98
1806909000 Oth chocolate and food preparation contcocoa Germany, Fed. Rep. 40 2,052
Of
1806909000 Oth chocolate and food preparation contcocoa Belgium 425 24,160
1806909000 Oth chocolate and food preparation contcocoa Greece 8,750 9,454
1901101000 Preparations for infant use of maltextract, for retail sale East Timor 360 482
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Malaysia 2,912,738 9,072,963
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Myanmar 3,063 38,217
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Viet Nam 840,000 3,321,333
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Maldives 127 640


HS Description
Country
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Saudi Arabia 6,088 46,373
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for United Arab Emirates 568 4,045
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Qatar 536 4,199
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Australia 700 633
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for East Timor 10,989 85,272
retail sale
1901102000 Preparations for infant use of goods ofhead 04.01-04.04, for Canada 48 230
retail sale
1901103000 Preparations for infant use of soya bean powder, for retail East Timor 334 2,145
sale
1901109100 Medical foods, preparations for infantuse, for retail sale Australia 6 21
1901109100 Medical foods, preparations for infantuse, for retail sale Solomon Islands 11,230 40,490
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale Hong Kong 6,648 13,935
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale Singapore 1,259 2,297
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale Philippines 195,249 744,321
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale Malaysia 23,881 72,469
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale Maldives 6,714 50,827
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale United Arab Emirates 21,850 28,600
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale Australia 2,508 6,282
1901109900 Oth preparations for infant use,w/ cocoa<40%, for retail sale East Timor 81,056 255,837
1901201000 Mixes & doughs of flour, groats, meal,starch/malt extract, not Hong Kong 386 2,538
cont. cocoa
To be continue in next edition...

2. TIME DEPOSIT LEADING BANKS IN JAKARTA RP / US$
(% / Year)
Name of Bank 27-May-16 30-Jun-16 29-Jul-16 31-Aug-16 30-Sep-16
CITIBANK 6.30 / 0.20 5.20 / 0.10 6.10 / 0.20 6.07 / 0.25 3.60 /0.30
STANDARD CHARTERED BANK 6.10 / 0.40 6.13 / 0.38 6.10 / 0.40 6.13 / 0.38 6.10 / 0.40
BANK HSBC 5.50 / 0.40 5.25 / 0.35 5.30 / 0.40 5.13 / 0.40 4.80 / 0.40
BANK ANZ INDONESIA 3.90 / 0.40 3.93 / 0.38 3.90 / 0.40 3.93 / 0.20 3.90 / 0.20
BANK BUKOPIN 7.00 / 0.80 7.00 / 0.80 7.00 / 0.80 7.00 / 0.80 7.00 / 0.80
BANK CENTRAL ASIA Tbk 5.00 / 0.20 5.00 / 0.23 5.00 / 0.20 5.00 / 0.23 5.00 / 0.20
BANK CIMB NIAGA 6.90 / 0.50 6.88 / 0.50 6.90 / 0.50 7.28 / 0.50 6.80 / 0.50
BANK COMMONWEALTH 5.00 / 0.80 6.80 / 0.10 4.80/ 0.10 5.00 / 0.10 5.00 / 0.10
BANK DANAMON INDONESIA 6.60 / 0.50 6.50 / 0.50 6.30 / 0.50 6.25 / 0.50 6.00 / 0.50
BANK DBS INDONESIA 7.60 / 0.70 7.25 / 1.70 7.50 / 0.70 7.00 / 0.70 6.60 / 0.80
BANK MAYBANK INDONESIA 7.10 / 0.30 6.50 / 0.50 6.50 / 0.60 6.50 / 0.75 6.10 / 0.80
BANK MANDIRI 6.10 / 0.60 6.00 / 0.75 6.00 / 0.50 6.00 / 0.50 5.90 / 0.40
BANK MAYORA 7.00 / 0.30 6.75 / 0.25 6.00 / 0.30 6.75 / 0.25 6.80 / 0.30
BANK MEGA 4.50 / 0.50 4.00 / 0.50 5.80 / 0.50 4.00/ 0.50 5.50 / 0.50
BANK NEGARA INDONESIA 7.00 / 0.90 6.75 / 0.88 6.80 / 0.90 6.63 / 0.63 6.60 / 0.60
BANK OCBC NISP Tbk 6.80 / 0.60 6.38 / 1.00 6.90 / 0.60 6.25 / 0.63 5.80 / 0.60
BANK PANIN INDONESIA 7.00/ 0.80 6.75 / 0.75 6.80 / 0.80 6.63 / 0.75 6.60 / 0.80
BANK PERMATA Tbk 6.80 / 0.50 6.63 / 0.70 6.60 / 0.30 6.38 / 0.38 5.90 / 0.30
BANK RAKYAT INDONESIA 6.60 / 0.80 6.63 / 0.50 6.60 / 0.50 6.63 / 0.50 6.60 / 0.50
BANK TABUNGAN NEGARA 5.50 / 0.10 5.50 / 0.05 5.50 / 0.10 5.50 / 0.05 5.50 / 0.10
BANK UOB INDONESIA 7.10 / 0.10 5.25 / 0.73 4.10 / 0.80 6.88 / 0 10 6.30 / 0.10
3. MIDDLE RATE FOREIGN CURRENCIES IN JAKARTA

(Rupiah)
Dates US$ 100 Yen Sin $ Euro
07 June 2016 13,478.00 12,621.64 9,902.29 15,289.46
11 July 2016 13,172.00 12,798.32 9,781.32 14,621.60
10 August 2016 13,133.00 12,823.34 9,736.82 14,548.75
09 September 2016 13,090.00 12,869.31 9,714.29 14,723.65
10 October 2016 13,002.00 12,541.12 9,473.23 14,475.14
Source : Bank Indonesia

Indochemical 539 Prospects For High Density Polyethylene Plastic Hdpe

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Indochemical 539 Prospects For High Density Polyethylene Plastic Hdpe

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1. TAX AMNESTY PROGRAM PHASE 1 ASSESSED SUCCESSFUL

4. MARKET PROSPECTS FOR HIGH-DENSITY POLYETHYLENE PLASTIC (HDPE)

NEWS & ANALYSIS

PHARMACY AND COSMETIC

Prepared by PT. CAPRICORN Indonesia Consult Inc.

CEMENT, CERAMICS AND GLASS

PULP AND PAPPER

FIBER AND THREAD

1L. Development of Chemical Materials Export in Indonesia, Jan December 2015

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Copying Allowed By Stating Source

Prepared by PT. CAPRICORN Indonesia Consult Inc.

TAX AMNESTY PROGRAM PHASE 1 ASSESSED SUCCESSFUL

However, repatriation of offshore funds only reached Rp 136,500,000,000,000

Tax Amnesty Program in Indonesia (Tax Rates)

Decription Period Tax Rates

Prepared by PT. CAPRICORN Indonesia Consult Inc.

Reception of Tax Amnesty

Target Per 30 September 2016 Received

TAX AMNESTY BEAT SINGAPORE CAPITAL MARKET

Demonstration and Rejection

Prepared by PT. CAPRICORN Indonesia Consult Inc.

Prepared by PT. CAPRICORN Indonesia Consult Inc.

MARKET PROSPECTS FOR

Demand on HDPolyethylene (HDPE) in Indonesia since 2010 up to 2015 experienced

Polyethylene is produced through polymerization of ethylene (C2H4), either through a

Prepared by PT. CAPRICORN Indonesia Consult Inc.

There are several kinds of polyethylene manufacturing process, including:

1. High Presure Process

Prepared by PT. CAPRICORN Indonesia Consult Inc.

The operating pressure between 150-200 MPa (typical)

The operating pressure used between 200-250 MPa (typical)

2. Suspension (Slurry) Process

In this process polyethylene is suspended in a hydrocarbon diluent to

b. Loop Reactor Process

3. Gas Phase Process

Prepared by PT. CAPRICORN Indonesia Consult Inc.

The operating pressure is used between 0.7-2 Mpa (typical)

Industry of Polyethylene (HDPE) in Indonesia

Currently in Indonesia there are two manufacturers of polyethylene (PE) operating

The second largest polyethylene manufacturer is PT. Chandra Asri Petrochemical

Prepared by PT. CAPRICORN Indonesia Consult Inc.

Profile of Main Players of Polyethylene

PT. Chandra Asri Petrochemical Tbk. (TPIA)

Prepared by PT. CAPRICORN Indonesia Consult Inc.

The fifth reactor is a technology bimodel revolutionary High Density Polyethylene

Currently the authorized capital of the company amounted to Rp.

PT. Lotte Chemical Titan Nusantara (Titan)

Prepared by PT. CAPRICORN Indonesia Consult Inc.

In 2006, PENI acquired by petrochemical companies from Malaysia, namely Titan

World-Scale Polyethylene Plant To Be Built In Indonesia

The cooperation is to build a new world-scale polyethylene plant with a capacity of

Prepared by PT. CAPRICORN Indonesia Consult Inc.

In addition, PT Chandra Asri Petrochemical Tbk ambition to embrace the 50%

Polyethylene Production Continue to Increase, 2009-2015

Year Production Utility Growth

Prepared by PT. CAPRICORN Indonesia Consult Inc.

Imports of HDPE Continue to Increase Each Year

Decreased in production of PE in 2015 was due to increased of imports which were

In 2011, PE imports continued to increase to 507,113 tons with a value of US$

Import Growth (%)

Prepared by PT. CAPRICORN Indonesia Consult Inc.