Responsible Care Members

Indonesia

Member type: RCLG

Chemical industry

The development of Indonesian industry in general is aimed at strengthening competitiveness, extending the domestic processing chain and motivating growth of industry ‘clusters’. For the period 2010-2025, the industrial sector is expected to grow 10%/year, to account for 35-40% of national output. Petrochemicals is one of ten core industry clusters. The long-term objective is to meet growing domestic olefin needs of 10-20%/year.

Key regions for development of the petrochemical industry are Banten, East Java and East Kalimantan. Capacity utilization of the petrochemical industry is still below installed capacity, and the government is driving for better integration with raw material supplies. Ethylene demand has climbed from around 450,000 tonnes in 1995 to over 1.5m tonnes 2006 and is projected to reach 2.6m by 2015. In 2006, ethylene production was around 585,000 tonnes while demand was put at 1.6m tonnes. Chemical industry growth in 2006 is put at 4.5%, accounting for 10% of total industry’s 28% contribution to GDP.

National association

The Coordinating Agency of the Chemical Industry (BKS-INKIM) and the Indonesian Chemical Industry Club (ICIC) merged to form a new organization in 2008: Federasi Industri Kimia Indonesia (Federation of the Indonesian Chemical Industry) - FIKI. The move received support from senior business communities, industry associations, the Indonesian Chamber of Commerce and the Ministry of Industry. A key objective of the new organization is to lead efforts to develop the chemical industry in Indonesia in ways that benefit communities, nation and state.

 The three pillars of  FIKI are industry, government and society. Member companies have committed to performance improvement through implementation of Responsible Care. FIKI’s role will be to: coordinate the activities of leading chemicals-related associations in relation to government, society and international / global parties; assist with policy-making of the national industry; act as a facilitator in business promotion, investment and trading; and offer networking for related legal business.

 Responsible Care is implemented through the Komite Nasional Responsible Care Indonesia (KN-RCI) which is one of 20 chemical industry associations making up FIKI.