Chemical Week 2003/4/10

New Hitch for Stalled Indonesia Aromatics Plant

The Indonesian Bank Restructuring Agency (IBRA; Jakarta) and state-owned oil company Pertamina (Jakarta) are objecting to conditions imposed by the Japan Bank for International Cooperation (JBIC) for a previously announced $400-million loan to finance the restart of construction of an aromatics joint venture at Tuban, Indonesia, sources say. IBRA and Pertamina are concerned about JBIC's conditions relating to production guarantees from the planned complex, sources add. IBRA owns 59.5% of the jv, Trans-Pacific Petrochemical Indotama (TPPI) and Pertamina has 15%. The other TPPI shareholders are Siam Cement with 17% and Nissho Iwai and Itochu, each with 4.25%. The project has been suspended since the Asian economic crisis in the late 1990s.

日本経済新聞 2002/6/22

大規模石化事業「ツバン」 インドネシア、建設再開


Engineering Business 2001年 EnB16号



Indonesia Finance 2002/5/7

Hashim asked not to join new firm to run Tuban petchem complex

The Tirtamas Group and its owner Hashim S. Djojohadikusumo have been told not to join a new company established to run their former assets in the huge Tuban petrochemical projects, Indonesian Bank Restructuring Agencys (IBRA) chairman Syafruddin Temenggung said.

The Tirtamas Group, which was the majority shareholder of the project, has a debt of Rp6tr to IBRA and in the process of restructuring the debt, the group had agreed to hand over its assets in the multibillion dollar project to the agency.
The pledged assets include PT Trans-Pacific Petrochemical Indotama (TPPI), PT Pacific Fibretama, PT Polytama Propindo and PT Petro Oxo Nusantara.

PT Tans-Pacific Petrochemical Indotama (TPPI) was established as a joint venture between Tirtamas Group which controls 65% shares, Siam Cement 20%, Nissho Iwai 5%, Itochu 5%, and the Koch Refining (of the United States) owns the remaining shares. The joint venture was established on January 24, 1997.

According to the master plan, the integrated olefins and aromatic centre will consist of a combination of olefins and aromatics processing facility estimated to cost $2.3bn, and some $900m worth intermediate petrochemical industries which will produce 100,000 metric tons of high density polyethylene (HDPE), 300,000 m.t. of low density polyethylene (LDPE), 200,000 m.t. of polypropylene (PP) and 500,000 m.t. of styrene monomer per year.

Indonesia Finance 2002/6/26

Restructuring of the debt of PT Tirtamas Majutama, the holding company of the Tirtamas Group

The Indonesian Bank Restructuring Agency (IBRA) said it is almost certain to complete the restructuring of the debt of PT Tirtamas Majutama, the holding company of the Tirtamas Group.

IBRA executive Mohamad Syahrial said the Rp4.2tr debt of Tirtamas Majutama will be restructured through a
new company, Newco, in which IBRA holds 70% stake.

The remaining 30% of Newco is owned by Honggo Wendarto through PT Silakencana Tirtalestari, who is shareholder of PT Tirtamas Majutama.

Newco will take over the debts owed by eight subsidiaries of PT Tirtamas Majutama. Under the arrangement, Newco will issue 10-year exchangeable bond to IBRA valued as much as the debt.

PERTAMINA News 2001/12/14

PERTAMINA participates in TUBAN Petrochemical Mega Project

 "I do believe his project not only become a short case of respects to petrochemical industry in Indonesia but also to the national state, the confidence of the investors in the long term prospect of Indonesia business opportunities," stated by PERTAMINA's President Director & Chief Executive Officer, Baihaki Hakim in the signed ceremony of Master Participation Agreement (MPA) with Java Energy Resources (Pte.) Limited and Sales & Purchase Agreement (SPA) with Concorcium of Trans Pacific Petrochemical Industry (TPPI), placed in PERTAMINA's head office, Friday (12/14).

 This signment is related to the development of Tuban Petrochemical Mega Project (East Java) as follow up of KKSK's (Committee of Financial Sector Policy) decision dated on June 29th 2001. PERTAMINA has 15 % share in TPPI as the project executor. TPPI Consortium consists of Tuban Pi (59.5%), TuPet (17%), PERTAMINA (15%), ITOCHU Corporation (4.25%) and Nissho Iwai Corporation (4.25%). PERTAMINA's participation in this consortium is first step to be a big player in Petrochemical, especially in aromatic.

 In this operation, PERTAMINA will supply 17000 barrel oil per day LSWR (Low Sulfur Wax Residue) and as as return it will get middle destilate product (Oil Base Fuel). It would be helpful in supplying OBF for East Java, because it can reduce transportation cost, tax, etc., and the Mega Project will stimulate the development of OBF Refinery in East Java.

ANZ Panin Bank Newsletter 2001/1

 Japanese creditors want Pertamina to continue the development of the stalled US$2.3 billion petrochemical project in Tuban, East Java. Pertamina's processing director Ariflin Nawawi said that Nissho Iwai Corp. and Itochu Corp., who financed the Tuban petrochemical project, wanted Pertamina to buy a stake in PT Trans Pacific Petrochemical Indotama (TPPI), which owns the project, so that the latter gets fresh funds to continue with the development. TPPI was 70% owned by the Tirtamas Group and 20% by a Singapore unit of Thailand's Siam Cement PCL., Tuban Petrochemical Pte Ltd. The remaining 10% is evenly split between Itochu and Nissho Iwai. Construction of the olefin and aromatic integrated project halted in early 1998, after US$900 million had been spent. When completed, the facility would have an annual production capacity of 335,000 tons of reformate, 1.1 million tons of kerosene, 189,000 tons of diesel fuel, 500,000 tons of paraxlyne, 100,000 tons of toluene, 120,000 tons of orthoxylene and about 1 million tons of light naphtha.


Platts 2004/2/8

Project financing of Indonesia's Tuban complex on track: SMBC

Financing for Indonesia's Trans-Pacific Petrochemical Indotama complex (TPPI) in Tuban is on track, the head of project finance at Sumitomo Mitsui Bank, David Gardner said at a conference in Singapore Sunday. SMBC is the lead arranger in the project. Financing of the project is expected to be finalized by the end of the first quarter or Q2 of this year, Gardner said. TPPI's $1-bil aromatics complex is a joint venture among Indonesia's state-owned Pertamina and Thailand's Siam Cement, Japan's Nissho Iwai and Itochu. Shelved in 1998 because of the Asian financial crisis, the Taban project was recently revived, and would require an additional funding of $400-mil. Part of the funds for the project would come from securing long-term offtake of the plant's output by Japan. "There has been some negative publicity recently following the pull out of several big name players from Indonesia," Gardner said. "But there has been a quiet movement to clean up the financial system," he added.


平成16年5月26日 三井住友銀行


本プロジェクトでは、本プロジェクト向け資金供与を目的としてオランダに設立されたSPC(Keris Petro Finance N.V.)が借入人となります。SPCに供与された資金は事業実施主体のPT.Trans-Pacific Petrochemical Indotama社(TPPI)に供与され、建設コストなどに充当されます。
TPPI社にはプルタミナの他、インドネシア政府が大株主となるP.T. Tuban Petrochemical Industries社(Tuban Petro)、本邦2商社(伊藤忠商事株式会社・双日株式会社(旧日商岩井株式会社))などが出資するとともに、プラントの建設請負業者(EPCコントラクター)として日揮株式会社が参画するなど、本プロジェクトはインドネシア政府及び本邦企業が深く関与しています。
三井住友銀行は、昨年クローズしたタンジュンジャチBプロジェクトや本プロジェクトのように、今後もファイナンスアドバイザー・アレンジャーとして日本貿易保険など輸出信用機関(Export Credit Agency)の信用補完機能を活用したソリューション提供を通じて、エマージングマーケット向けストラクチャードファイナンス分野に注力してまいります。

2004年5月26日 独立行政法人 日本貿易保険



 本ファイナンスは、(株)三井住友銀行を始めとする市中銀行団が、オランダに設立される特別目的会社であるKeris Petro Finance N. V.に対して融資を行うものであり、プロジェクトの実施者である
PT. Trans-Pacific Petrochemical Indotama社は、同資金をもって700百万ドルのツバン石油化学プラントの建設を行います。Keris Petro Finance N. V.に対する融資契約は、2004年2月26日に調印されており、日本貿易保険は、市中銀行団が融資する200百万ドルに対して、海外事業資金貸付保険の引き受けを行います。

 なお、本ファイナンスは、インドネシアの国営石油会社であるプルタミナ(PT. Pertamina (Persero))が生産・供給する低硫黄残渣油を返済原資とするものであり、日本貿易保険としては、プルタミナの信用危険をてん補する第1号案件となります。



  保険契約の内容 : 海外事業資金貸付保険(貸付金債権等)
  貸付先 : オランダに設立する特定目的会社(Keris Petro Finance N. V.)
  貸付金額 : 市中銀行団による200百万米ドル
  保険価額 : 元本200百万米ドル及び金利
  てん補範囲 : インドネシア非常危険及びプルタミナ信用危険他
  付保率 : 非常危険: 97.5%
  信用危険: 50.0%
  保険責任期間 : 約8年

Platts 2006/2/16

Pertamina's Tuban petrochemical plant may be ready in February

Indonesia's oil and gas company Pertamina says that its Tuban petrochemical plant may be ready to start up in February. It is set for a 100,000 b/d capacity of condensate to be produced as light naphtha, oil products, and aromatics, Pertamina's processing director Suroso Atmomartoyo said Thursday. He declined to comment on when the plant will reach its full capacity and where condensate will be obtained.
The plant is to have an annual installed capacity of around 3.6-mil mt, comprising
1.065-mil mt/yr of light naphtha, 927 mt/yr of aromatics products (paraxylene, benzene, toluene, and orhoxylene), as well as oil products (reformate, kerosene, and diesel oil).
The Tuban petrochemical project was headed by PT Trans Pacific Petrochemical Indotama (TPPI), which is located in Tuban, eastern Java.
Pertamina holds a 15% stake in TPPI, while the remaining is held by Tuban Petro, Japan's Itochu and Sojitz corporations, and Siam Cement of Thailand, Atmomartoyo said.
In 1998, the project, which was 60% complete, was stopped due to the Asian financial crisis. TPPI signed a $400-mil loan agreement in 2004 with the Japan Bank for International Cooperation (JBIC) and Nippon Export and Investment Insurance (NEXI) to resume construction of the project.

Indonesia Today 2006/2/2

Tuban Petrochemical Complex start next month

The long-delayed (eight years to be precise!) giant Tuban Petrochemical Complex is scheduled to start its commercial production next month. Next week the complex would start receiving condensat (raw material) from Senipah gas field for heating up process before it commence the commercial production next month.
The complex would produce fuels (diesel, kerosene, and motor gasoline), naptha (raw material for olefin producers), paraxylenes (raw material for synthetic fiber), benzene and toluene (chemicals for various industries).
State-owned oil and gas company PT Pertamina will absorb all the fuels, while naptha and chemicals will be available for open market.
The plant has combined capacity of 3.6 million tones per annum (TPA) of petrochemicals product, comprising 1 million TPA of aromatics (500,000 ton paraxylene, 200,000 ton benzene, and 150,000 ton toluene), 1 million TPA of naphtha, and 1.6 million TPA of kerosene and diesel.
Tuban Petrochemical Complex is owned by PT Trans Pacific Petrochemical Indotama (TPPI). TPPI is a subsidiary of PT Tuban Petrochemical Industries (Tuban Petro), a company established by government pursuant to debt restructuring of Tirtamas Group, former controlling shareholder of the project. Ministry of Finance, represented by PT Perusahaan Pengelola Aset (a company established to manage remaining assets of Indonesia Bank Restructuring Agency) owns 70% shares in Tuban Petro, while the remaining owned by PT Silakencana Tirtalestari.
Other shareholders of the Tuban Complex are Pertamina, Itochu Corporation, Tuban Petrochemicals Pte Ltd (a subsidiary of Thailand's largest conglomerate Siam Cement PCL), and Sojitz Corporation (formerly Nissho Iwai Corporation).
The project was started in early 1990s but suspended following the financial crisis in 1998 with huge loans. Government came to rescue the project with new loan facility from Japanese creditors at US$400 million disbursed in 2004.
Under the debt restructuring, government holds Rp3.266 trillion of 10-year bond and Rp4.167 trillion of mandatory convertible bond (equals to 21-25% shares in TPPI).