Thailand petrochemical producer, PTT Global Chemical Pubilc Company Limited (PTTGC and Indonesia’s national oil company, PT Pertamina (Persero), have signed the Head of Agreement (HoA) for a joint investment on the US$4-5 billion global-scale petrochemical complex in Indonesia, which is targeted to be set up by end of 2013 and to start commercial operation by 2017.

The two companies will also undertake detailed feasibility studies related to future business development plan.

Karen Agustiawan, Pertamina President Director and CEO, said the complex will consist of world-scale olefins plant and downstream polymer units.

"Due to promising demand of Petrochemical in Indonesia and Pertamina's huge potential to integrate refining and petrochemical business, we have set Petrochemical business as one of Pertamina's growth pillars. We have chosen PTTGC is based on the fact that both of us are respected companies that representing each our own country, Indonesia and Thailand, in each of their respective business sector, " she said.

Anon Siriseangtaksin, CEO of PTT Global Chemical said the collaboration will enable the company to further strengthen its core business and its footprint in Southeast Asia. As the fifth largest oil producer, Pertamina owns and operates fuve refineries across Indonesia and produces a total capacity of around 1 million Barrel of crude oil a day. PTT Global Chemical is the chemical flagship of PTT Group, with the combined chemical/petrochemical capacity of 8.45 million tonnes per year and crude oil/condensate distillation capacity of 280,000 barrels per day. It has recently been expanding its business into the specialties and green chemicals through several overseas strategic acquisitions.