“Yes, we think we buy pertamina propylena and pay directly while reducing our debts. That is not what they want. For the most part, the toll agreement proposed yesterday by Pertamina from B to B has harmed Polytama,” he said. Pertamina sees the toll agreement as the best way, since Polytama has not yet repaid its debts to Pertamina. Bisnis.com, JAKARTA — Negotiations between PT Polytama Propindo and PT Pertamina (Persero) as part of the discussion on the toll agreement to meet the needs of domestic polypropylene have not reached an agreement, also described as deadlock. Negotiations on the possibility of using the toll agreement offered by Pertamina were negotiated by both parties. Vice President of Communication pertamina Ali Mundakir said Pertamina plans to supply propylene to Polytama refinery with tolling fee concept, where Pertamina will pay processing fee to Polytama. Please note that Pertamina offers the concept of a toll agreement to solve problems. Polytama`s production is about 240,000 tons per year, Pertamina 35,000 tons per year and PT Chandra Asri about 480,000 tons per year. Currently, it proposes to use a cash payment system, which means that there is money that Pertamina is available to obtain pertamina propylene. Last year, the national polypropylene requirements were about 1.4 million tonnes per year. In other words, imports of polypropylene will increase.
The non-performance of the agreement is expected to have a chain effect ranging from increased imports of propylene to higher prices for industrial products for propylene users. In the meantime, the final product becomes pertaminas right to be marketed to end consumers. However, according to Fajar, the refinery shut down last March and has not yet been able to operate. He illustrated the fact that industries that use propylene such as the packaging industry have to wait three months to obtain raw materials. Tolls and monthly booking fees are subject to any applicable adjustments described in section 3.3 below and section 3.6 below. Before it ceased operations, the refinery had a polypropylene capacity of approximately 12,500 tonnes per month with a capacity of 17,500 tonnes per month. Based on business calculations, with the shutdown of Polytama, domestic production of polypropylene is about 515,000 tons per year. Propylene is the raw material for polypropylene production. However, in recent years, many capacities have been closed in Asean, making it even more difficult to obtain imports of propylene. PT Tuban Petro Indonesia President Riki Ibrahim insisted that the programme proposed by Pertamina could not be implemented because of the damage caused to Polytama.
Through the application of the system, Pertamina pays a processing fee to Polytama. In the meantime, the final product becomes pertaminas right to be marketed to end consumers. The supplier must charge the buyer and the buyer must pay the toll for the product in currency (converted by the conversion rate of the currency). He hopes that Polytama will be able to first pay his debts. According to Fajar, about 60% of Asean is even more glaring. “We only hope that pertamina wants if the product is purchased directly. Instead of Pertamina launching the offer abroad, it is better for us to buy,” he added. The owner of the applicable refining and HEP Operating will make reasonable commercial efforts to comply with these new applicable laws and will negotiate in good faith to mitigate the effects of these new applicable laws and determine the level of new tolls. In addition, the price of propylene on the world market reached $1.850 per tonne. The shutdown of production at the Polytama refinery was caused by the halting of Pertamina`s propylene supply.