Indonesia and Iran firm up cooperation in Petro-Chemical Sector

Tehran, Iran | November 11, 2007 by D-8 Secretariat

PT Pusri of Indonesia and National Petroleum Company International (NPCI) of Iran has just signed a formal contract of the establishment of a Joint Venture Company, in Tehran today (November 11, 2007). This signing marks the final level of the project realization of the NPCI-PUSRI Ammonia/Urea Project (or Indonesia-Iran Fertilizer Project/ IIFP), that worth US$ 600 million in investment, with the ownership 50 percent of Indonesia, and 50 percent of Iran. NPIC of Iran provides gas deposit and capital, and Indonesian PT PUSRI, a holding state owned company in fertilizer, provides capitals to build the fertilizer project in Pars Special Economic Energy Zone (PARSEEZ) in Assaluyeh, Iran, that is targeted to meet the capacity of 3,500 ton a day.

In the first general meeting of shareholders which was directed by General Director of PT PUSRI, Mr. Dadang Heru Khodri, it was decided that the Board of Directors will be assigned to 2 directors from NPCI and 2 directors from PT PUSRI. The meeting also decided that Dr. A.M Jamshidi will perform as Managing Director of the Joint Venture. In the press release sent to D-8 Secretariat today, the Joint Venture is named as “Hengam Petrochemical Company”.

In the signing of the establishment, Dr. Jamshidi also underlined that there should also be similar cooperation among private sector, instead of government sector.

Along this line, the D-8 Secretary General Dipo Alam said that the possibility of joint investment on industrial cooperation is very potential to be implemented by private sectors of D-8 countries. He said that for example, an Indonesian company, P.T. Indorama, has invested in Egypt for a fertilizer company, in Indonesia for Pure Trepthalic Acid (PTA) factories, in Nigeria for a PTA factory, and in Turkey for a spun yarn factory.

The CEO of PT Indorama, Mr. S.P. Lohia, in one occasion told the Secretary General, that once D-8 put Preferential Trade Agreement, Visa Agreement, Custom Agreement, and other trade facilitations in place soon, he believed that join investment and/or more investment by private sectors increased within D-8 countries. In fact this is the essence of D-8 economic cooperation that is expected “down-to-earth” as has been reiterated by Secretary General since his assignment to the post in early 2007.

The Indonesian president, H.E Susilo Bambang Yudhoyono, is scheduled to make a working visit the Joint Venture in December 2007, or in early January 2008.

D-8 Organization congratulates the signing and believe that this is a model of industrial cooperation among D-8 countries, and other prospective cooperation among members should be prepared on the feasibility study, therefore can be expected to be implemented soon too. This opportunity of cooperation in industry will be further discussed in next D-8 Working Group on Industrial Cooperation in Indonesia, in early 2008.

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