Graduation Year
2025
Date of Submission
5-2025
Document Type
Open Access Senior Thesis
Degree Name
Bachelor of Arts
Department
Economics
Reader 1
William Ascher
Terms of Use & License Information
Rights Information
2025 Daniel P Yim
Abstract
As the Indonesian economy and population grow, domestic consumption of petrochemicals for the manufacture of downstream products, such as the plastics found in everyday life, has been increasing. However, despite robust demand for downstream chemicals such as polyethylene terephthalate (PET), polypropylene (PP), and polyethylene (PE), Indonesia consistently operates as a net importer of many upstream and downstream chemicals. It remains dependent on the Middle East, as well as on China, South Korea, Japan, Thailand, Singapore, and other countries. Although Indonesia utilizes more modern and recently built plants compared to its trading partners, the facilities are smaller in scale. Even for the intermediate chemicals it does produce, output is insufficient and importing is necessary. Recognizing this, the Indonesian government has initiated the construction of new petrochemical facilities. Many are in partnership with foreign investors and foreign chemical companies, to reduce reliance on chemical imports. This report analyzes the feasibility, in terms of cost per metric ton in USD, of producing downstream chemical products domestically in Indonesia compared to benchmarks in Japan and South Korea.
Recommended Citation
Yim, Daniel P. Mr, "Assessing Indonesia’s Potential Comparative Advantage in Downstream Petrochemical Industry Development: A Cost and Profitability Analysis" (2025). CMC Senior Theses. 4043.
https://scholarship.claremont.edu/cmc_theses/4043
