s. Korea's Honam To Invest US$5 Bln In Petrochemical Plant

Jakarta, April 23 (ANTARA) - South Korea`s Honam Petrochemical Corporation is ready to build a petrochemical plant in Cilegon, Banten province, at a cost of US$4-5 billion, an investment official said. "Honam has explored the possibility of investment in Indonesia and chosen Cilegon as the location of the plant," Azhar Lubis, deputy for investment control and realization to the chief of the Investment Coordinating Board (BKPM), said here on Monday. He noted that Homan would cooperate with PT Titan Kimia Nusantara Tbk. as a local partner in building the plant on 60 hectares of land. The land will likely be located at the PT Krakatau Industrial Estate Cilegon (KIEC), a subsidiary of state steel manufacturer PT Krakatau Steel. The investment plan, however, could not yet be completed since Homan has not reached an agreement with Krakatau Steel on the use of the land, he said. "The issue of the land to be used as the location for the plant must be settled. We hope State Enterprises Minister Dahland Iskan (as the proxy of Krakatau Steel shares) would help settle the land problem," Azhar said. Earlier, Kim Gyo Hyun, senior managing director of Honam Petrochemical Corporation, said if the land issue could be settled soon the construction of a plant would begin in the first quarter of 2013 and be completed in the first half of 2016. He said another South Korean company, Samatan Corp., has expressed their readiness to invest in Indonesia, he said. "(Samatan Corp) is to invest US$300 million to develop gas exploration in South Sumatra," Azhar said.