“Yes, we believe that we bought pertamina propylene and immediately paid off while we deducted our debts. That is not what they want. For the most part, the toll agreement proposed yesterday by Pertamina from B to B has harmed Polytama,” he said. Pertamina Vice President of Communication Ali Mundakir said Pertamina plans to supply propylene to polytama refinery with tolling fee concept, where Pertamina will pay processing fee to Polytama. Bisnis.com, JAKARTA — Negotiations between PT Polytama Propindo and PT Pertamina (Persero) have focused on toll agreements to meet the needs of indigenous polypropylene and have not reached an agreement. Please note that Pertamina offers a pricing agreement concept to solve problems. Pertamina believes that the toll agreement is the best way, since Polytama has not yet repaid its debts to Pertamina. Pertamina`s opportunity to use toll agreements was negotiated by both parties. Before the shutdown of the poliytamas refinery, Polytama was one of three domestic producers that manufactured polypropylene. The owner of the applicable refining and HEP Operating will make reasonable commercial efforts to comply with these new applicable laws and will negotiate in good faith to mitigate the effects of these new applicable laws and determine the level of new tolls. Most packaging products are used for the food and beverage industry. The final effects will, of course, be the rise in prices on these derivatives. With the system, Pertamina Polytama will pay a processing fee.
In the meantime, the final product is Pertamina`s right to be marketed to end consumers. In the meantime, the final product is Pertamina`s right to be marketed to end consumers. PT Tuban Petro Indonesia President Riki Ibrahim stressed that the programme proposed by Pertamina could not be implemented because it harms Polytama. He pointed out that propylene user industries, such as the packaging industry, have to wait three months to obtain raw materials. Last year, the need for native polypropylene was about 1.4 million tonnes per year. In other words, imports of polypropylene will increase. “A few days ago, I knew there was already a decision, the program could not be implemented because it was hurting Polytama. Finally stalled,” Fajar said when contacted by Business on Thursday (17/7).
The failure of the agreement is expected to have chain effects, ranging from increased imports of propylene to higher prices for industrial products for propylene users. He hopes that Polytama will be able to first pay his debts. Before it ceased operations, the refinery had a polypropylene capacity of approximately 12,500 tonnes per month with a capacity of 17,500 tonnes per month.