New Market Report: Indonesia Petrochemicals Report Q4 2015

The Indonesian petrochemicals industry is witnessing continued investor interest with a surge of capacity over the next five years set to make it more self-sufficient. However, BMI 's latest Indonesia Petrochemicals Report warns that the country's petrochemicals market is set to witness a downturn amid weaker growth, particularly as a result of a downturn in the automotive sector.

Petrochemicals output is set to decline in coming months as a result of the overhaul of facilities operated by Chandra Asri Petrochemical (CAP). The company is targeting a revenue increase of at least 30% in 2016 when its annual production of ethylene and propylene is expected to increase by up to 860,000tpa and 470,000tpa, respectively, from 600,000tpa and 320,000tpa in 2015. This should increase Indonesia's self-sufficiency. Other planned capacity includes a new synthetic rubber plant, PT Synthetic Rubber Indonesia, a joint venture between CAP and French tyre maker Compagnie Financiere du Groupe Michelin which is due to come onstream by 2017. The firm will also partner with BP develop a condensate splitter to produce naphtha. Indonesia currently imports all its naphtha requirement and the splitter is set to reduce imports to 60% of local demand. The splitter is due to come onstream by 2019.

Full Report Details at
- http://www.fastmr.com/prod/1058396_indonesia_petrochemicals.aspx?afid=301

On the consumption side, the situation is deteriorating with Indonesia's real GDP growth forecast for 2015 and 2016 downgraded to 5.0% and 5.6%, respectively, versus 5.3% and 6.5% previously. The petrochemicals consuming automotive sector is set to decline by 5.0% in 2015, a drastic revision from the 5.9% growth forecast in the previous quarter, which will impact negatively on the consumption of engineering polymers and synthetic rubbers. On the upside, the outlook for Indonesia's construction sector, a major consumer of polymers particularly PVC, remains positive, although political and currency risks will be the main challenges to project implementation.

The Indonesia Petrochemicals Report has been researched at source, and features BMI Research's market assessment and independent forecasts for key petrochemicals sub-sectors. The report also analyses the impact of regulatory changes, recent developments and the background macroeconomic outlook and features competitive landscapes comparing companies by products and services, sales, market share, investments, projects, partners and expansion strategies.

BMI's Indonesia Petrochemicals Report provides industry professionals and strategists, sector analysts, trade associations and regulatory bodies with independent forecasts and competitive intelligence on the Indonesian petrochemicals industry.

Key Benefits

* Benchmark BMI's independent petrochemicals industry forecasts to test other views - a key input for successful budgetary and planning in the Indonesian petrochemicals market.
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