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Air Products Realizes $7b Investments in Indonesia

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Jakarta. Air Products and Chemicals, an American American multinational industrial gases and chemicals manufacturer, has realized the first phase of its investment in projects worth $7 billion in Indonesia in the past two years, a top official said this week. 

That accounts for almost half of the company’s $15 billion investment commitment to Indonesia, according to Minister of Investment/Head of the Investment Coordinating Board (BKPM) Bahlil Lahadalia. 

“There are DME [dimethyl ether] and methanol projects in Balongan [in West Java],” Bahlil said about Air Products’ projects in Indonesia. 

“We also want to build methanol [industry] in Cepu [in Central Java]. The remaining investment will be allocated to establish a hydrogen industry which will be built in our country by utilizing state-owned dams,” he said. 

Bahlil commented on the investments after Seifi Ghasemi, the chairman and chief executive officer (CEO), paid a courtesy call to President Joko “Jokowi” Widodo at the Ritz Carlton Hotel in Washington, DC, on Thursday.

Bahlil said a discussion to develop an industry upstream to downstream in the petrochemical sector emerged in the meeting.

“Now it is the Indonesian Government’s turn to execute it immediately since both the money and the project are already available. I think today’s meeting shows that such investment is not only controlled by a certain country but has been evenly distributed,” said Bahlil.

During the discussion, Jokowi underlined the significance of putting the American multinational industrial gases and chemicals manufacturer’s investment plan into action. 

“I applaud the signing of the Memorandum of Understanding in Dubai in November 2021. As part of the strategy, I held a groundbreaking for the downstream coal to DME business in Bukit Asam [in South Sumatra] on Jan 24,” he said.

“I hope that these investment initiatives may be implemented immediately,” Jokowi said.