Cilegon, September 12, 2024—Minister of Investment/Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, expressed his appreciation for PT Nippon Shokubai Indonesia's commitment to developing the petrochemical industry in Indonesia. In 2025, the company will begin construction of the fourth phase in Cilegon and is expected to be operational by 2027.
"I appreciate Nippon Shokubai, which has been investing since 1996. I arrived during the fourth phase (construction) with an expansion value of approximately IDR 1.69 trillion (USD 110 million)," he said during a visit to PT Nippon Shokubai Indonesia's facilities in Cilegon, Banten Province, to review the progress of the Japanese company's investment in Indonesia.
He stated that the Indonesian government is closely monitoring existing investments in the country. He added that not only new investments but also existing ones must be properly maintained.
"This is being done to serve as a word-of-mouth marketing tool for other investors to invest in Indonesia," explained Rosan.
History of Nippon Shokubai Indonesia's Commercialization
Data from the Ministry of Investment/BKPM records that PT Nippon Shokubai Indonesia first began commercial production in 1999 with its first facility. Since then, the company has continued to expand, with a second facility starting commercial operations in 2014 and a third in 2023.
This expansion, he continued, is expected to not only have an impact on the company but also a positive impact on the surrounding community.
"In this fourth phase, construction is planned to begin in 2025, and production is expected to begin in 2027. This will also increase the role and human resources in Cilegon, allowing it to grow and develop. The government has vocational and training programs to support this," Rosan added.
Previously, PT Nippon Shokubai Indonesia announced plans for its fourth industrial expansion with an investment of approximately IDR 1.69 trillion (USD 110 million). Construction of this new facility will begin in 2025 and is planned to begin commercial production in 2027.
This fourth facility will focus on producing Indonesia's first Superabsorbent Polymer (SAP), with a production capacity of 50,000 tons per year. SAP products are crucial in the manufacturing industry, especially for products such as diapers, sanitary napkins, and other items that require high absorbency.
"As long as they are within the legal framework, we will fully support and facilitate Nippon Shokubai's investment. The government also has a Super Tax Deduction program, which offers tax incentives of up to 200%," Rosan added.
This visit reaffirms the government's commitment to continuously encouraging foreign investment that can add value to the national industry and create jobs.
Total Japanese investment in Indonesia over the past five years has reached more than USD 19 billion, with key sectors including the automotive industry, electricity and gas, housing, and industrial estates.
PT Nippon Shokubai Indonesia is a successful example of how Japanese companies continue to strengthen their presence in Indonesia through sustainable investment.