Today: October 22, 2016, 5:33 am

Indonesia Petrochemicals Market: New industry data published
Indonesia Petrochemicals Report Q1 2014 - a new market research report on 2014-04-02 12:21:02
Indonesia´s growth and its market size, with a population of 240mn, continues to attract investment. While a significant increase in petrochemicals capacities is expected over coming years, there remain significant risks, particularly the impact of new low-cost ethane-based petrochemicals production in the US and the differential between ethane and Indonesia´s principle feedstock naphtha, according to the latest Indonesia Petrochemicals Report.

The market trends point to a less bullish short-term scenario than BMI had previously predicted, although Indonesia will remain a significant growth market in South East Asia over the medium term. Indonesia´s petrochemicals market will not escape the effects of the country´s external imbalance, high inflation, and rising borrowing costs on economic activity. As the economic slowdown continues to play out, we have downgraded our 2013 real GDP forecast slightly to 5.7% (from 5.8% previously), and maintain our expectations for the rate of expansion to ease further to 5.4% in 2014. While the trends are placing petrochemicals demand under pressure, Indonesia´s market remains relatively robust and with local production unable to cover domestic demand the country will remain a significant net importer of petrochemicals products in Asia.

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