Strengthening the Domestic Petrochemical Industry, Pertamina Officially Inaugurates the First Orthoxylene Products Shipment and Supply

Surabaya, June 26, 2023 – The Orthoxylene product manufactured by PT Trans-Pacific Petrochemical Indotama (TPPI) refinery in Tuban, East Java, was officially distributed today. The product distribution from the refinery, with a 50,000 tons/year production capacity, is carried out to meet the government's directive. In this case, the Ministry of Industry focuses on petrochemical product portfolio development by providing basic raw materials, such as Orthoxylene. 

This fulfillment is also in line with Pertamina's commitment as a national energy company, referring to the company's internal vision through the Subholding Refining & Petrochemical PT Kilang Pertamina Internasional and the Subholding Commercial & Trading PT Pertamina Petrochemical Trading representation.

Orthoxylene is a petrochemical derivative product with promising profit prospects and sustainability. Orthoxylene is abyproduct of the unit 211 fractionator without reducing the Paraxylene production. It has the same value and sustainable product with a 30,000-40,000 metric tons/year demand in phase one.

Didik Bahagia, Director of Operations at PT Kilang Pertamina Internasional, stated that the expansion of improvements in production, without compromising quality, provides a significant boost to PT KPI's margin and existence in the petrochemical industry, following the company's vision and mission.

"This PT Kilang Pertamina Internasional and PT Pertamina Patra Niaga's commitment as a Pertamina Business entity to support the government's program in promoting domestic industry development and reducing imports," Didik said.

Pertamina plays a crucial role in the domestic downstream petrochemical industry development, supported by strong oil refining refineries. Furthermore, as a central figure in petrochemical raw materials production, Pertamina could be a national economic locomotive that significantly impact Indonesia's economy. Therefore, according to Didik, adaptive strategies are crucial to become a global player in competing with current business challenges. "This includes the ability to produce various valuable products such as Orthoxylene, Smooth Fluid, Brizone, BTX, Propylene, and others," said Didik.

Didik believes that through various initiatives, the company's flexibility in selecting and producing valuable products that can provide the best value for the company in specific periods will be enhanced in the future. "This agility is expected to help the company survive the current business uncertainties," he concluded.

A similar sentiment was expressed by Ignatius Warsito, Director General of Chemical, Pharmaceutical, and Textile Industry at the Ministry of Industry. Warsito stated that the Orthoxylene domestic production would reduce dependence on imported raw materials, help Indonesia's trade balance, and secure the petrochemical industry supply chain. "For that, I want to express my appreciation to PT Kilang Pertamina Internasional (KPI) and PT Trans-Pacific Petrochemical Indotama (TPPI) for successfully addressing the domestic petrochemical raw material supply issues by reactivating national Orthoxylene production," he said. 

The ceremonial moment of Orthoxylene (OX) Production and Inaugural Lifting took place in Surabaya (26/6), attended by Bindra Setya Utama, Chairman Commissioner and representative of CEO of PT Petrowidada, Oos Kosasih, Director of Marketing Center and Trade of PT PertaminaPatra Niaga, Deni Febrianto, CEO of PT Pertamina Petrochemical Trading, and Erwin Widiarta, President Director and CEO of PT TPPI.

Fadjar Djoko Santoso, Vice President of Corporate Communication at Pertamina, stated that the petrochemical business is the business of the future, and Pertamina will continue to transform oil into petrochemical products. 

"Pertamina will continue to innovate in the development of petrochemical products as part of the crude-to-chemical downstream program, in line with the ongoing RDMP project or refinery modernization," said Fadjar.

Pertamina, as a leading company in the energy transition, is committed to supporting the Net Zero Emission 2060 target by continuously promoting programs that directly impact the Sustainable Development Goals (SDGs) achievement. All these efforts align with Environmental, Social & Governance (ESG) implementation across all Pertamina's business lines and operations.**