Government Continues to Strengthen Chemical Industry as a Strategic Sector for National Development

INTI- The government is continuously developing the chemical industry as a strategic sector that plays a crucial role in national development. This industry serves as the basic capital for downstream industries such as food and beverage, textile fibers, packaging, plastics, electronics, automotive, and pharmaceuticals. The success of national industrial development is greatly influenced by the profile of the chemical industry.

As a supplier of raw materials to downstream industries, the chemical industry sector is expected to have adequate capacity and maintain good and stable performance at all times. "This is what drives the government to continuously strengthen the chemical industry through increased production capacity and the completion of the industrial structure to ensure the supply of raw materials for industries," said the Acting Director General of Chemical, Pharmaceutical, and Textile Industries (IKFT) at the Ministry of Industry, Ignatius Warsito, representing the Minister of Industry at the inauguration of the expansion of PT. Nippon Shokubai Indonesia's 3AA plant in Cilegon, Banten, on Tuesday (May 23).

The importance of the chemical industry is evident from its significant contribution to the GDP. In 2022, the chemical industry was the third largest contributor to the non-oil and gas processing industry sector. The Acting Director General of IKFT stated that this indicates that chemical substances are highly strategic commodities and greatly influence government policies, especially in the economic field.

Therefore, the Ministry of Industry (Kemenperin) appreciates PT. Nippon Shokubai Indonesia (PT. NSI) for its investment expansion. PT. NSI is the only company in Indonesia and Southeast Asia that produces Acrylic Acid and Acrylic Esters, and it is also the first and only Superabsorbent Polymer (SAP) producer in Indonesia.

Acrylic Acid and Acrylic Esters are intermediate chemical materials with wide-ranging applications, including as raw materials in emulsion, polymer and resin industries, acrylic fibers, and polyolefin copolymers. Meanwhile, SAP is used as an absorbent material in disposable baby diapers. The Nippon Shokubai Group holds a 20% market share in the world for SAP products, making it the largest SAP supplier globally.

The investment in PT. NSI's Acrylic Acid project's third phase in Cilegon, Banten, demonstrates the significant potential for the development of intermediate chemical industries. With the addition of 100 thousand tons/year of Acrylic Acid production capacity, the total Acrylic Acid capacity of PT. Nippon Shokubai Indonesia reaches 240 thousand tons/year. This increase in production capacity contributes to maintaining domestic supply as a response to the growing demand for domestic Acrylic Acid, while also expanding export market potential.

With a total investment value of USD 693 million to date, PT. NSI has been able to create skilled employment opportunities and open up new job prospects. "We highly appreciate and value the investment in the expansion of the Acrylic Acid plant carried out by PT NSI, which was delayed due to the Covid-19 pandemic but eventually implemented successfully," expressed the Acting Director General of IKFT.

Furthermore, he conveyed that the Ministry of Industry will continue to strive to create a favorable, profitable, and sustainable industrial business climate through various policies, ensuring that investment continues to grow and the economic strength of Indonesia becomes increasingly resilient. ***.Hans