OREANDA-NEWS. August 22, 2014. PT Indo Thai Trading (ITT), a joint venture between PT Pertamina (Persero) ("Pertamina") and PTT Global Chemical Public Company Limited, Thailand ("PTTGC"), commences its operation.

The incorporation of ITT is one of the significant milestones in the implementation of joint cooperation between the two leading Petroleum and Petrochemical companies in the ASEAN region which was signed on end of 2013.
 
ITT was established to serve the great demand of Indonesian polymer market in line with joint development plan of a world-scale Integrated Petrochemical Complex, which will be on stream by 2019. The integrated complex itself is planned to be built in Balongan, West Java with polyolefin (polyethylene and polypropylene) production capacity of approximately 1.2 million tons per year and other petrochemical derivatives i.e.  MEG, Butadiene, Pygas production capacity of nearly 1 million tons per year. Marketing and sales of all production from this complex will be conducted by ITT as a trading arm.
 
Prior to the on stream of the petrochemical complex, ITT was granted from its parents, Pertamina and PTTGC, as the exclusive distributor in Indonesia to sell their products, Polyethylene and Polypropylene, solely in the territory. Nevertheless, outsourcing products from other third parties to diversify its portfolios is also in ITT's plan.
 
Marketing and Commercial Director of PT Pertamina (Persero), Hanung Budya, delivered on the occasion: "The petrochemical market in Indonesia is very promising, in 2025, it is estimated that the value of this market is around USD 24-30 billion. Now is the time for us to seize these opportunities, with this strategic partnership with PTTGC-Thailand as one of the leading polyolefin producer in the ASEAN region, we firmly believe that this collaboration will be very promising in the future."
 
While Mr. Bowon Vongsinudom, President and CEO of PTT Global Chemical conveyed: "Today's launching is another significant advancement of cooperation between Pertamina and PTTGC. With support from PERTAMINA and PTTGC and the two companies at the forefront of products variety and supply consistency, skillful product development and technical support, as well as market expertise, I have a strong confidence that ITT will have a great success in satisfying customers in Indonesia territory. Also it will be the foundation, set in place to grow and be ready in time for the developing world class petrochemical complex inauguration in Indonesia."
 
Apart from recruiting professionals, ITT's team is filled with the experienced industry experts from the two leading refineries and petrochemical firms. This ideal combination plus its prudent operation competitive edges shall bring out the best of ITT to meet customer expectations and beyond.
 
Pertamina owns and operates 5 refineries throughout Indonesia. With the total capacity of around 1 million Barrel Crude Oil Per Day, it is ranked the 5th largest in Asia. In this regard, it has tremendous potential to integrate refinery and petrochemical business hence adds more values to the natural resources of Indonesia. With these advantages, Pertamina is determined to be a major player in Indonesia as well as in the region.
 
PTT Global Chemical , as chemical flagship of the PTT Group, with the combined chemical / petrochemical capacity of 8.72 million tons per year and crude oil / condensate distillation capacity of 280,000 barrels per day. The Company has been expanding its business into the specialties and green chemicals through a number of overseas strategic acquisitions. Such investments also clearly represent PTT Global Chemical's growth aspiration to expand its business internationally.