CPC Taiwan Allegedly Invests in Indonesia Through Strings Pulled by Compradores

 CPC Taiwan Allegedly Invests in Indonesia Through Strings Pulled by Compradores

Source: UDN

July 23, 2020

Not long ago, the KMT exposed that Su Jia-chyuan (蘇嘉全), now secretary-general to the President, and his nephew, DPP legislator Su Chen-ching (蘇震清), along with high-echelon executives of several state-owned enterprises, had met with top officials of the Indonesian government through strings pulled by Yang Luck International Manpower Group to pursue personal gains by bypassing the Taipei Economic and Trade Office (TETO) in Indonesia in 2017 when the elder Su was Legislative Speaker.  

Yesterday, KMT legislator Lin Szu-ming (林思銘) further exposed that through a string pulled by “compradores,” CPC (Chinese Petroleum Corporation) Taiwan bypassed the official channel to reach a joint investment deal with Pertamina, an Indonesian state-owned oil and natural gas corporation, to establish a petrochemical park in Indonesia and build a new naphtha cracker complex there.  

Lin pointed out that in 2016, CPC Taiwan originally planned to sell its Fifth Naphtha Cracker Complex for NT$50-60 billion to Pertamina and directly move the complex from Kaohsiung to Indonesia, but the plan was canceled for some reasons. Lin went on to say that however, on October 11, 2018, CPC Taiwan signed a framework agreement on the petrochemical park in Indonesia with Pertamina, and on June 5 this year, CPC Taiwan signed a contract to invest NT$100 billion in the project.

In response, the CPC Taiwan stated that after a professional assessment, it was determined that its original plan for the Fifth Naphtha Cracker Complex was not cost-effective, adding that the company thus turned to assess the feasibility of investing in a new naphtha cracker complex in Indonesia. No middleman had pulled strings in the procedures for this investment project, CPC Taiwan stressed.

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