Development of polypropylene (PP) resin industry in Indonesia.
Development of Polypropylene (PP) industry depends partly on the characteristics of petrochemical industry, which in turn depends on the supply and prices of oil as the main feedstock.
The PP industry depends on the availability of basic materials. The production capacity of the country PP industry has remained unchanged from 605,000 tons per year in the past decade. The country has three PP producers PT. Tri Polyta Indonesia, PT. Polytama Propindo and PT. Pertamina. The producers have planned capacity expansion to meet the domestic requirement. PT. Polytama Propindo plans to increase its capacity by 160,000 tons this year, PT. Tri Polyta Indonesia plans capacity expansion by 120,000 tons in 2011.
Until now, there is still imbalance between supply and demand for PP. The country's PP production totaled 561,346 tons in 2008 up 6.9% to 600,000 tons in 2009. In 2009, TPI succeeded in increasing sales 17% from 330,500 tons in 2008 to 385,700 tons in 2009. The domestic PP market began to improve in 2009 from the slump in 2008.
The country's PP consumption was around 800,000 tons in 2009. The PP consumption is expected to rise in this year and in the following years with growing demand from plastic industry. However, there are a number of factors discouraging or hampering plans for capacity expansion to meet the growing demand such as scarcity in supply of the feedstock propylene. The country still needs to import 30% of its propylene requirement.
In addition with the full implementation of AFTA, imported products of PP from Thailand and Malaysia will be another major factor discouraging capacity expansion by local producers. With 0% import duty imported products would be more competitive. The two neighboring countries already have large exportable surplus of PP. Meanwhile, China is still need large imports of PP every year, therefore, that country also needs large supply of propylene to produce PP.
The association of plastic, aromatics and olefin industries (INAplas) has asked the government to postpone implementation of AFTA until 2015. The association has also called for the postponement of the ASEAN-China Free Trade Agreement and FTA with other countries including India, Korea, Japan and Australia and New Zealand as the domestic industries are not yet ready for competition.
Classification and Tariff Code of Polypropylene
Tariff classification of Polypropylene Polypropylene Resin (PP) Tariff Code (HS) PP resin Homopolymer : --In other liquid forms 39.02.10.190 --In granules 39.02.10.200 --In other forms 39.02.10.900 PP resin Copolymer : --In dispertion or solution 30.02.30.110 --In other liquid forms 39.02.30.190 --In Granules 39.02.30.200 --In other forms 39.02.30.900
Characteristics of product
Polypropylene (PP) resin is a midstream petrochemical product, a derivative of olefin centre produced from propylene polymerization of process. Propylene is a derivative of naphtha or natural gas produced through cracking of hydrocarbon molecules. PP is used a feedstock for various types of plastic products different in the process of crystallization, purity, rigidity and melting points.
PP, therefore, could be used as substitute for a number of other polymer products such as polyethylene (PE), wood fiber, natural fiber and certain metal. PP consists of three types--Homo-polymer Propylene, Random copolymer (propylene-ethylene) and Random polymer (propylene-ethylene-butene).
Copolymer PP is formed from propylene with the addition of other monomers in small proportion (1%-7% ethylene) to turn out tough product resistant to collision. This type of PP is used for durable gods such as electrical equipment, household wares and parts of car body. It is also sued for other applications such as printed materials, films and lamination.
Addition of butene to PP could change the characteristics of PP. Normally the result of the mixture is used as a layer to absorb heat on PP films. PP could also be changed through the process of compounding. The process is made with addition of a small portion of additive in the polymer already melted. The additive could be rubber, filler, material that could increase resistance and materials to stabilize ultra violet ray that the polymer is durable for out door use.
Capacity stagnant, production growing 3.4% per year
In the period of 2005-2008 the country's PP production capacity remained unchanged from the level of 605,000 tons per year. There was no capacity expansion mainly because of the scarcity in supply of propylene as the feedstock.
Meanwhile, the domestic production grew 3.4% a year from 525,915 tons in 2005 to 600,000 tons in 2009.
PT. Tri Polyta Indonesia (TPI) succeeded in increasing its PP production to 460,000 tons in 2009, from 360,000 tons in the previous year. In increasing the production, TPI set aside US$25 million for capital spending. The fund was used to buy new machines to improve productivity of its factory in Cilegon, Banten.
The PP products of TPI vary to meet domestic demand including for plastic bag, carpet and house ware industries.
Tri Polyta the largest producer
The country has three producer of PP including PT Tri Polyta Indonesia, PT Polytama Propindo and PT Pertamina (Plaju).
PT Tri Polyta Indonesia
PT Tri Polyta Indonesia (TPI) which came on stream in 1992 in Cilegon, Banten, is the largest PP resin producer in Indonesia. The company uses the technology of Gas UNIPOL developed by Union Carbide Corporation and Shell Chemical Company, TPI started operation in 1992 with two production lines and production capacity of 200,000 tons per year.
In 1995, a third production line came on stream increasing its production capacity to 360,000 tons per year.
The original composition of shareholders of TPI was as made up of PT Bima Kimia Citra (31.22%) of the Bimantara Group, Prayogo Pangestu (8.51%), Commerzbank (SEA) Ltd. (7.08%), Henry Pribadi (6.73%), Ibrahim Risjad (5.31%), Wilson Pribadi (3.89%), Johny Djuhar (2.13%), Henry Halim (0.71%) and the public (34.42%). In June 2001, PT Bima Kimia Citra and Henry Pribadi sold their stakes.
In December, 2003, the composition of shareholders consisted of Prajogo Pangestu (46.46%), Commerszbank(SEA) Ltd. (7.08%), Ibrahim Risjad (5.31%), Wilson Pribadi (3.89%), Johny Djuhar (2.13%), Henry Halim (0.71%) and the public (34.42%).
The products of TPI are the types of PP resin including homo-polymer, Random Copolymer and Block Copolymer, al with the brand of Trilene.
The products are used for films, Injection Moulding, Sheet thermoforming, yarn and fiber multifilament, etc.
In 2009, TPI succeeded in posting a 17% increase in sales to 385,700 tons from 330,500 tons in 2008, although its income fell slightly 5% to Rp 4.74 trillion from Rp 4, 988 billion in 2008.
However, the performance of TPI was quite impressive with net profit at Rp 483 billion as against a net loss of Rp14 billion in 2008. TPI gained from the falls in the prices of petrochemical products and derivatives. The fall in the selling prices came at the same time with the declines in the prices of basic materials.
In 2010, TPI plans to expand its production capacity to 480,000 tons from 360,000 tons a year with an investment of US$ 28 million. The capacity expansion started in January and is expected to start commercial operation at the end of the first quarter of 2011. The de-bottlenecking project will strengthen the competitiveness of TPI on the domestic PP market, which continues to grow by 4%-5% per year.
TPI has number contract buyers in the country including PT Argha Karya Prima Industri, PT Trias Sentosa Tbk, PT Indopoly Swakarsa Industry and PT Titan Kimia Nusantara. TPI could sell around 15%-20% of total production of polyethylene.
PT Polytama Propindo
PT Polytama Propindo is the second largest producers of PP resin in Indonesia with a production capacity of 180,000 tons in 1996 and in 2005 its production capacity was expanded to 200,000 tons.
PT Polytama Propindo is located Balongan, Indramayu, and West Java near the Pertamina's Exor 1 oil refinery, which supplies propylene for PT Polytama Propindo.
PT Polytama Propindo is a joint venture established by PT Tirtamas Majutama (80%), which is owned by tycoon Hashim S. Djoyohadikusumo and Nissho Iwai Corp. of Japan (10%) and BP Chemical Co. of Britain (10%). In mid 2008, PT. Polytama suspended operation as it underwent routine overhaul to coincide with the overhaul of a number of machines of the refinery of PT Pertamina in Balongan. The process of overhaul was completed in December 2008.
In 2010, PT. Polytama plans expansion of its capacity by 160,000 tons per year, from 280,000 tons to 440,000 tons. The project is estimated to cost US$ 20 million.
The new production facility is expected to start operation in July 2010 reducing the deficit in the domestic supply of PP currently around 300,000-350,000 tons. According to INAplas, the country needs around 700,000-800,000 tons of PP plastic per year.
The Polypropylene plant of Pertamina in Plaju South Sumatra was built in 1971 with a production capacity of 20,000 tons per year. In 1994 its capacity was expanded to 45,000 tons per year.
Pertamina Plaju receives supply of feedstock in Raw Propane propylene from FCCUS refinery, Sungai Gerong, South Sumatra. The products of Pertamina Plaju is Polytam / Polypropylene pellet (plastic ore) which is produced through polymerization of propylene gas with modification of several additives including antioxidant, stabilizer, lubricant, anti-block and slip agent.
Applications of the product of Pertamina Plaju include:
Polytam Film, for:
--basic material for plastic bags for food, vegetables, fruits and bread
Polytam Yarn, for:
--basic material of plastic bags
--Strapping band, plastic rope, straw
Polytam Injection, for:
--Plastic house ware
--Food and medicine equipment
PT. Petamina plans expansion by building PP plant in Balongan, Indramayu. In 2008, Pertamina already signed EPC contract with PT Rekayasa Industri and Toyo Engineering Corp to convert gas waste from the Balongan refinery into propylene.
Pertamina has secured a loan of US$225 million to finance the PP factory development in Balongan from a Japanese syndicate of Sumitomo Mitsui Banking Corporation (SMBC), BNP Paribas, and HSBC. The risk is covered by Nippon Export and Investment Insurance (NEXI) from Japan.
Supply of propylene basic material
Supplies of propylene in Indonesia come from PT Chandra Asri with a production capacity of 280,000 tons of propylene in Cilegon, Banten; and Pertamina's refinery in Balongan, Indramayu (EXOR 1) which has a production capacity of 280,000 tons per year.
Apart from the Balongan refinery supplying propylene for PT Polytama Propindo, Pertamina also supplies propylene for its polypropylene plant in Plaju from its Sungai Gerong refinery in South Sumatra.
Supply from Chandra Asri
Chandra Asri Olefin Centre has a cracking facility to decompose hydrocarbon into C2 and C3 using the technology of Lummus Crest of he United States. The cracking facility was designed to process heavy naphtha, light naphtha and Liquefied Petroleum Gas (LPG).
Apart from producing Ethylene and Propylene, Chandra Asri produces Polyethylene, with a production capacity of 300,000 tons and Pyrolysis gasoline with a production capacity 210,000 tons
Chandra Asri also has two facilities to produce Polyethylene (PE) resin one using the US Unipol technology with a production capacity of 200,000 tons and another using Japan's technology of Showa Denko with a production capacity 100.000 tons
One important facility of Chandra Asri is Sea Water Cooling system, a system that could reduce the temperature by 1,000 degrees Celsius when the process of cracking to Cyrogenik Storage by pumping 60,000 m3 of sea water with high pressure every hour.
A 54 megawatt power plant has also been built to support the process of production.
PT Tri Polyta Indonesia increases imports of Propylene
PT Tri Polyta Indonesia (TPI) receives supply of propylene from Chandra Asri in addition to imports. As the country's largest producer of polypropylene (PP), TPI needs guarantee in supply of the basic material through contract with PT. Chandra Asri.
In 2006, its purchase of propylene from Chandra Asri dropped to the lowest ever at 227,190 tons, at a price of US$1,009 as Chandra Asri cut production during maintenance of its production facility.
Meanwhile, the price of propylene he Asian market continued to scale up in 2006 to follow the soaring price of oil hat reached US$ 80 per barrel in the third quarter of that year.
Amid the rising price reaching US$1,221 per ton, TPI had to increase imports of the basic material to 71,150 tons, from only 25,764 tons in 2005.
In 2009, propylene needed by Tri Polyta was partly or 300,000 tons supplied by PT Chandra Asri and imports rose to 80,000 tons.
Projection of production capacity
With the capacity expansion by producers, the country's production capacity for PP will rise to 765,000 tons in 2010. The additional capacity will come from PT. Polytama Propindo 160,000 tons bring its total capacity to 440,000 tons per year from 280,000 tons.
In 2012, the country's PP production capacity is expected to rise further to 885,000 with addition of 120,000 tons from PT. Tri Polyta Indonesia. The capacity is expected to remain unchanged until 2014.
With capacity utilization of around 80%-90%, the country's PP production could still be increased. It is predicted than in 2014, the industry will reach its full capacity unless there is new producer or capacity expansion.
In 2010, TPI set production target at 370,000 tons, lower than last year's level of 385,700 tons.
Rising trend in demand prompted producers to expand capacity.
PT. Polytama Propindo plans expansion of production capacity to 440,000 tons per year from 280,000 tons per year. The capacity expansion project will cost around US$20 million to be completed later this year.
PT Tri Polyta Indonesia Tbk (TPI), the largest PP producer also plans capacity expansion from 360,000 tons to 480,000 tons per year. The company, therefore will need 506,000 tons of propylene a year for the PP capacity expansion. The project will cost around US$ 8 million.
The capacity expansion project is to be completed in 2012. With the operation of the new production facility, TPI hopes to reduce by as much as 5%-6% of the production cost.
With the expansion, TPI will need additional supply of at least 126,000 tons of propylene a year to be supplied by Pertamina. Currently Pertamina plans Blue Sky program that to catch waste gas from its refinery in Balongan and Cilacap to be processed into propylene. Propylene is a compound produced through the process of RCC (residue catalytic cracking).
Apart from propylene, the RCC process also turns out LPG gas, poly gasoline (mogas and RON 98), naphtha (RON 92), LCO (light cycle oil), and DCO (decant oil). The Blue Sky program will likely produce around 100,000- 150,000 tons of propylene per year.
Imports of PP resin growing
Homo-polymer is the type that has dominated the country's imports of PP resin. Homopolymer PP resin has wide range of applications. It could be used as feedstock to produce plastic films, Injection Moulding, Sheet Thermoforming, Yarn and Fiber multifilament. Copolymer PP resin is generally used as feedstock for electrical components, household equipment and car bodies.
Imports of PP resin peaked at 373,000 tons in 2008. Imports are dominated by Homopolymer in the form of granules, which accounted for 218,000 tons, followed by Copolymer PP resin in granule accounting for 135,000 tons.
In 2009, imports of PP resin fell to 325,188 tons including homopolymer in granule which made up 323,341 tons (90.4%) of the total imports with other forms making up 30,863 tons (9,2%), and 1,847 tons (0,4%) in the form of Copolymer Propylene in liquid.
The potential market has prompted world producers planning to boost exports of that material to the country. From 2005 to 2009, Singapore was the largest supplier of PP resin for Indonesia. In 2006, imports of PP resin from that country peaked at 89,114 tons, up 18.3 % from 75,342 tons in 2005.
Following Singapore was South Korea although imports from which declined in the past several years with Japan the third largest.
Floods of imports
With the ASEAN China Free Trade Agreement (ACFTA) effective as from January this year, there has been growing concern that the local producers of plastic goods would lose their foothold on the domestic market. Large imports are feared to soon flood the domestic market causing marketing problem for local producers. Local producers, therefore, asked for the postponement of the agreement for three years. Apparently the government would not bow to the demand.
Based on data from INAplas, PP products from other Asean countries imported by Indonesia reached 180,484 tons in 2008 or 48% of the country's total imports. The imports are predicted to climb to 198,097 tons in 2010.
Imports, therefore, are expected to come in floods from Malaysia and Thailand, which have surplus in production. Thailand has just completed the construction of a new factory although its old producers already have excess in production capacity. Thailand is expected to be able to sell its product at cheaper price as it has integrated facility producing also the basic material for PP resin.
Meanwhile INAplas said total imports of PP are predicted to rise 44.6% to 340,000 tons in 2010 as a result of the ASEAN CEPT that scraps the import duty as from this year.
Indonesia's Exports of PP resin
Indonesia's exports of PP resin are relatively small as production is designed only for domestic consumption.
In 2006, the country's exports of PP resin reached 11,707 tons, valued at US$ 10,694 or an increase of 19% from 9,829 tons in the previous year. It the largest exports so far
In 2008, exports rose again 11,236 tons, but fell in 2009 by 18.6% to 9,473 tons.
China is still the largest country of destination for PP resin exports from Indonesia. In 2006, exports to China reached 3,955 tons or the largest in the past five years. The second largest country of destination is Hong Kong to which exports average 1,800 tons per year.
In the past 2-3 years the prices of PP resin in the world market including in Asean, increased with the scarcity of propylene basic material supply. The increase in the PP prices boosted exports of polypropylene from Indonesia.
Consumption of PP resin
The domestic consumption of PP resin in the period of 2005-2008, grew 5.4% per year--from 746,659 tons in 2005 to 923,435 tons in 2008.
The increase in consumption was also marked with an increase in imports of PP resin. The increase in consumption followed growing demand from plastic industry using it as the feedstock.
Projection of PP resin consumption
The improved condition of the world economy in 2010 is expected to result in the revival of the manufacturing industry including plastic industry especially plastic food package, plastic bottle, plastic bag and plastic house ware industries. The revival of the industries will require larger supply of PP resin as the feedstock.
Therefore, consumption of PP resin in 2010 is forecast to rise to 965,000 tons and to 1,283,000 tons in 2014.
The domestic consumption of PP resin is projected to remain relatively small with the high price of that material in international market. The price of P resin is still too high despite the oil price fall to US$ 70 per barrel in May 2010 from US$ 80 in the third quarter of 2009.
In addition, the local producers of PP resin are already operating almost at full capacity, therefore, they could not increase supply for domestic consumption. Meanwhile, demand for PP resin on the domestic market has increased.
Some producers have planned capacity expansion to meet growing demand. PT. Tri Polyta Indonesia and PT. Polytama Propindo plan to expand their production capacity respectively by 120,000 tons and 160,000 tons per year. Implementation of the plan, however, would not be easy with the scarcity of supply of feedstock propylene. The country still depends on imports for 30% of its propylene requirement. The cost of imports would cause an increase in the production cost.
The main consumers of PP resin in Indonesia are producers of plastic films, plastic yarns, and for injection moulding
Based a survey by PT Data Consult, 40.8% of PP resin consumption in Indonesia is for plastic film industry to produce material for food packages cigarette packages, adhesive tape, etc. Around 27.8% is used for plastic bags and sacks and around 20% by injection moulding industry that produces household utensils and automotive components.
Delta P US$ 328 in 2009
Delta P is a petrochemical term showing the margin between the selling prices of polypropylene per ton and purchasing price of propylene per ton. Delta P is used to calculate profit as the cost of purchasing Propylene makes up 80% of the cost of goods sold for polypropylene.
Other components of cost contributing to the selling price of polypropylene include conversion cost, which is he cost of converting propylene into polypropylene, such as the use of catalyst, additives, electricity, fuel, spare parts, maintenance, general costs, personnel cost, packaging , depreciation, etc.
In 2007, the price of polypropylene was US$ 1,100 per ton Asia spot market and the price of propylene was US$ 1,304 per ton. Therefore, the Delta P that year was US$ 204 per ton.
In 2008, the Delta P was US$ 157 per ton, with the price of polypropylene at US$ 1,357 and that of propylene US$ 1,200 per ton.
In 2009, the Delta P rose to US$ 328 with the price of propylene rising to US$1,072. The PP price hike followed the rising price of oil in the world market.
Meanwhile, the price of plastic wrapper in the form of plastic sheet and films (biaxially-oriented polypropylene /BOPP) on the domestic market surged 28.3% on scarcity in supply of basic material in the form of polypropylene (PP).
Meanwhile, flexible package producers said the prices of plastic sheet and BOPP film in 2009 were around US$ 1.52 per kg. In April the price surged to US$ 1.95 per kg.
PP resin marketing and distribution
The oil price hike brought on an increase in the prices of naphtha, and in turn caused an increase in the price of propylene in Asia and world markets.
The supply and demand in the market of polypropylene in the country, therefore, will not be determined only by domestic factors but mainly by development sin the world market.
Production and market of PP resin and olefin products are controlled by large multi national companies. They set prices not on local condition but more on regional and world condition. Generally multinational companies have integrated facilities from upstream to downstream sectors that they operate more efficiently.
The increase in the price of polypropylene in Indonesia follows the rise in the price of polypropylene in Asian market. In 2008, the price of polypropylene in Asia was set at US$ 1,468 per ton as against US$ 1,357 per ton in Indonesia. In 2009, the price of polypropylene in Asia was US$ 1.006 per ton slightly higher than the price in Indonesia at US$ 1.400 per ton.
The three producers of polypropylene in Indonesia PT Tri Polyta Indonesia, PT Polytama Propindo and PT Pertamina Plaju--each has distributors or sales agents.
PT Tri Polyta which uses the brand of Trilene has three distributors PT Akino Wahana Indonesia, PT Bukitmega Masabadi and PT Juta Dharma Persada.
Each of the distributors has separate distribution areas. In potential markets like the Greater Jakarta area, West Java and East Java, PT Tri Polyta Indonesia has more than one distributor. They include PT Akino Wahana Indonesia and PT Bukitmega Masabadi.
PT Polytama Propindo known with the brand of Masplene, has three distributors PT Bukitmega Masabadi, PT Polymer Spectrum Sentosa and CV Tara Utama.
One of the distributors of PT Polytama Propindo, CV Tara Utama is no longer active after its performance continued to decline in the past seven years.
Unlike the two other producers, Pertamina uses no main distributor. Instead it uses sales agents to handle the distribution of its PP resin.
The agents are named according to the Marketing Units and are responsible for the distribution in certain area. Each Marketing Unit has a number of agents.
Prospects and Conclusion
* Based on the production figures in 2005-2009, the country's PP production rose 3.4% per year.
* Singapore is the largest supplier of polypropylene for Indonesia, while China remains the country of destination for PP export from Indonesia.
* Based on consumption in the 2005-209 period, and production , imports and exports during that period, Indonesian consumption of polypropylene in 2010 is predicted to rise to reach the level of consumption in pre crisis period --rising 5.4% per year.
* PP resin consumption in 2014 is predicted to reach 1.283 million tons, much exceeding the production capacity of the existing producers at 650,000 tons per year. Capacity expansion, therefore, needs to be planned from now.
* Capacity expansion is already made or planned by local producers. The country's production capacity will increase this year with expansion by PT. Polytama Propindo by 160,000 tons this year. Meanwhile, PT. Tri Polyta plans capacity expansion by 120,000 tons in 2011. Implementation of the plan, however, is still doubted with his scarcity of feedstock supply in propylene. The availability of propylene is the main factor to be considered in planning capacity expansion or construction of new PP factory.
* The price of polypropylene on the domestic market is determined on price developments in the region or the world, although the increase in the domestic price has been higher than in the regional and international markets in the past several years.
Table--1 PP resin production capacity and production, 2005-2009 Year Production Growth Production Growth capacity (%) (Tons) (%) (Tons) 2005 605,000 -- 525,915 -- 2006 605,000 0 535,750 1.9 2007 605,000 0 549,144 2.5 2008 605,000 0 561,346 2.2 2009 605,000 0 600,000 6.9 Average growth 3,4 Source: Industry ministry Table--2 Producers and capacity, 2009 Companies Location Process of Number of Capacity Start technology production (tons/ up lines year) PT Pertamina South. Mitsui 1 45,000 1974 (Plaju) Sumatra PT Tri Polyta Cilegon, UCC Unipol 3 360,000 1992 Indonesia Banten PT Polytama Indramayu, Himont 1 200,000 1995 Propindo West Java Sphiripol Total 605,000 Source: Industry ministry , ICN Table--3 Production capacity of Chandra Asri's Olefin Centre Types of products Production capacity (tons) Ethylene 600,000 Propylene 280,000 Polyethylene (Unipol) 200,000 Polyethylene (Showa Denko) 100,000 By Product : Pyrolysis Gasoline 210,000 Source: Chandra Asri Table--4 PT Tri Polyta Indonesia's consumption of propylene and price, 2006-2009 Year Suppliers Chandra Asri Imports Volume Average price Volume Average price (Tons) US$/Tons (Tons) US$/Tons 2006 227,190 1,099 71,158 1,221 2009 300,000 80,000 Source: TPI/ICN Table--5 Projection of Production capacity, 2010-2014 Projected Production Year capacity (000 Tons/year) 2010 765 2011 765 2012 885 2013 885 2014 885 Source: ICN Table--6 Projection of PP resin Production, 2010-2011 Year Projected Production (000 Tons) 2010 650 2011 704 2012 752 2013 796 2014 885 Source: ICN processed Table--7 PP capacity expansion projects, 2010-2012 Companies Production capacity Investment Start up (000 tons/year) PT. Polytama Propindo 160 US$ 20 million 2010 PT. Tri Polyta 120 US$ 28 million 2012 Indonesia Source : ICN processed Table--8 Imports of PP resin by types, volume ands value, 2005-2009 Tons US$ '000 Description 2005 2006 2007 Homopolymer PP resin PP in liquid or paste 342 66 500 324 44 1,138 PP in granule 129,420 123,872 136,961 131,683 149,419 174,368 PP in other forms 10,162 8,855 366 10,660 12,533 471 Sub Total 139,924 132,793 137,827 142,667 161,996 175,977 Copolymer PP resin Copolymer Propylene in 13 1 651 other liquid forms 52 5 438 Copolymer Propylene 86,130 100,565 110,665 in granule 106,204 130,541 155,101 Copolymer Propylene 4,506 3,025 9,009 in other forms 6,048 4,497 12,711 Sub Total 90,649 103,591 120,325 112,304 135,044 168,250 Total 230,573 236,384 258,152 254,971 297,040 344,227 Description 2008 2009 Homopolymer PP resin PP in liquid or paste 561 -- 1,964 -- PP in granule 218,724 292,478 353,085 315,310 PP in other forms 6,462 30,863 10,148 37,000 Sub Total 225,747 323,341 365,197 352,310 Copolymer PP resin Copolymer Propylene in 980 1,847 other liquid forms 1,582 2,070 Copolymer Propylene 135,534 -- in granule 214,173 -- Copolymer Propylene 11,064 -- in other forms 16,895 -- Sub Total 147,578 1,847 232,650 2,070 Total 373,325 325,188 597,847 354,380 Source: BPS Table--9 Exports of PP resin by type, volume, value 2005-2009 Tons (US$'000) Description 2005 2006 2007 2008 2009 Homopolymer PP resin PP in liquid and 1,168 1,273 -- -- -- past 497 316 -- -- -- PP in granule 3,215 3,732 7,364 9,132 6,407 1,594 1,419 8,893 27,888 14,879 PP in other forms 4,440 5,652 1,737 387 1,031 6,718 7,189 3,804 868 687 Sub Total 8,823 10,657 9,101 9,519 7,438 8,809 8,924 12,697 28,756 15,566 PP resin Copolymer Copolymer Propylene 632 644 1,002 1,714 2,032 in granule 619 729 1,325 3,860 2,551 Copolymer Propylene 373 406 456 3 3 in other forms 871 1,041 1,086 4 3 Sub Total 1,006 1,050 1,458 1,717 2,035 1.49 1.77 2.411 3.864 2.554 Total 9.829 11.707 10.559 11.236 9.473 10.299 10.694 15.108 32.620 18.120 Source: BPS Table--10 Domestic consumption of PP resin, 2005-2009 Year Production Imports Export Consumption Growth (%) 2005 525,915 230,573 9.829 746.659 --- 2006 535,750 236,384 11.707 762.305 1.8 2007 549,144 258,179 10.559 796.764 4.5 2008 561,346 373,325 11.236 923.435 15.9 2009 (*) 600,000 325,188 9.473 915.715 -0.8 Average growth (%) 5.4 Note: (*) prognosis 2009 Source: ICN processed Table--11 Projected Consumption of PP resin, 2010-2014 >Year Projected Consumption (000 Tons) 2010 965 2011 1,033 2012 1,100 2013 1,188 2014 1,283 Source: ICN processed Table--12 Estimated consumption PP resin by end products Types of Products Products Estimate of Percentage Consumption (%) Plastic Film Food, vegetable, 311,020 40.8 fruit, bread and snack packages,, adhesive tape, shopping bags etc. Plastic Yarn Woven bag, Plastic 211,920 27.8 rope, floor carpet, straw , etc. Injection Moulding Household utensils, 152,461 20 electrical and automotive equipment, toys, etc. Other Plastic bottles, 86,904 11.4 plastic containers, sanitary goods, etc. Total 100 Source: Industry ministry, Data Consult Table--13 Delta P of Polypropylene industry, 2007-2009 Year Price of Price of Delta P (US$) Propylene (US$) Polypropylene (US$) 2007 1,100 1,304 204 2008 1,200 1,357 157 2009 1,072 1,400 328 Source: ICN Table--14 Prices of polypropylene in Asia and Indonesia (US$ per tons) 2007 % 2008 % 2009 % Asia price 1,326 -- 1,468 10.7 1,066 27.4 Indonesian price 1,304 -- 1,357 4.1 1,400 3.2 Difference 22 111 334 Source: TPI, Data Consult Table--15 Distributors of PP by producers and brands Producers Brands Distributors PT Tri Polyta Trilene PT Akino Wahana PT Bukitmega Masabadi PT Juta Dharma Persada PT Polytama Propindo Masplene PT Bukitmega Masabadi PT Polymer Spectrum Sentosa CV Tara Utama (no longer active) PT Pertamina-Plaju Polytam Marketing Units--UPMS I--VIII Source: Data Consult
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|Publication:||Indonesian Commercial Newsletter|
|Date:||Apr 1, 2010|
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