Key insights and market outlook
PT Kilang Pertamina Internasional (KPI) has renewed its propylene supply agreement with PT Polytama Propindo (Polytama) for five years starting January 2026. This strategic move supports Indonesia's industrial downstream development and green economy initiatives, aligning with President Prabowo Subianto's Asta Cita vision. The partnership strengthens KPI's role in supporting national industry through petrochemical supply chain stability.
PT Kilang Pertamina Internasional (KPI) has taken a significant step in supporting Indonesia's petrochemical downstream industry through a renewed commitment with PT Polytama Propindo (Polytama). The companies have signed a new propylene supply agreement for the period from January 1, 2026, to December 31, 2030 1
This partnership directly supports President Prabowo Subianto's Asta Cita vision, particularly in strengthening energy resilience and accelerating industrial downstream development. The agreement demonstrates KPI's commitment to maintaining supply chain stability in the petrochemical sector, which is crucial for Indonesia's industrial growth.
The renewed agreement is also positioned within the context of Indonesia's green economy initiatives. By ensuring stable supply of critical petrochemical products like propylene, KPI is supporting the development of more sustainable industrial practices downstream. This strategic alignment with green economy principles is becoming increasingly important for Indonesian industries.
The five-year agreement provides long-term certainty for Polytama's operations, enabling better planning and investment in petrochemical processing capacity. For KPI, it reinforces their role as a key player in Indonesia's energy and petrochemical landscape. The partnership is expected to have positive ripple effects throughout the industry, supporting both economic growth and industrial stability.
The KPI-Polytama partnership represents a significant development in Indonesia's petrochemical sector. By combining their strengths, the companies are not only ensuring supply chain continuity but also contributing to the nation's broader economic and environmental objectives.
Perjanjian Pasokan Propilena
Pengembangan Industri Hilir
Inisiatif Ekonomi Hijau