PERTAMINA AGREES TO HELP FINANCE TUBAN PETROCHEMICAL PROJECT.(Pertamina invests $400 mn in project)(International Pages)(Brief Article)

Indonesian Commercial Newsletter, September, 2001

The state-owned oil and gas company Pertamina has agreed to provide US$ 400 milion to help finance the construction of the project of PT Trans Pacific Petrochemical Indotama in Tuban, East Java. The project cost of the giant project has been revised from US$ 1.2 billion to US$ 1.075 billion.

Pertamina will be involved by supplying feedstock such as naphtha and LSWR from its Balongan oil refinery. The fund from the sales of the petrochemical materials supplied by the Balongan oil refinery will be paid to JGC, the main contractor of the TPPI project. The project is already 65% completed. Its construction ground to a halt as a result of the crisis.