KEYNOTE SPEECH

DIRECTOR GENERAL FOR MANUFACTURING

INDUSTRY BASE
On
AMEICC WORKING GROUP OF CHEMICAL INDUSTRY
In theme of
The Updates on Chemical Safety Management;
Development of GHS and Toward WSSD 2020 Goal
Bali, July, 5th2011

The Chair – Co Chairman of AMEICC-Working Group

The Delegations from Japan and ASEAN Countries
The Chemical Industry Practitioners
Distinguished Guests

Assalamualaikum Wr.Wb
First of all, let’s thank God, due to His blessing, so
that today we are gathering here to attend the AMEICC
Working Group of Chemical Industry in Bali Indonesia.
On behalf of The Government of Indonesia; I am
welcoming you to Bali, which is well-known as the Island
of God, to all delegates. I also express my highly
gratitude to all parties which support organizing this
meeting today. For the Japan delegation, please accept
my deep condolences. I am sure Japan people could
recover quickly and properly. As your companion, I am
here accompanying you to raise for better future.

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Ladies and Gentlemen
The world are dynamically changed, especially for
global economic and industry activities. Nowadays, Asian
region becoming the centre of world economic, shifts the
domination of United States and European Union. Many
supporting factors are identified; such as projection of
more than 70% world population located in Asian region
in 2020 and security of raw material supply for industry
coming from this region. Eventhough the global crisis
year 2008 attacked to entire region, Asian economic
activities was strong enough to countermeasure this
crisis smoothly.
As we know that chemical industry is one of the
economic sectors which is a strategic for fulfilling human-
life demand. The chemical industry, especially
petrochemical, has a wide corelation with other industry
and the products are marketed following the global
supply chain mechanism. Several raw materials products
are limited to develop downstream petrochemical
industry beside technology constraints and capital
limitations. The phenomenon indicates that mutual
cooperation among countries is important to develop
petrochemical industry in Asian region. The cooperation
not only covers the physical development but also non-

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physical matters such as standardization procedure,
chemical management policy, and transfer of knowledge.

Distinguished Guest, Ladies and Gentlemen.

Indonesia has been focusing on petrochemical
industry development to raise the value added of oil and
gas product. Similar with other global player, Indonesia
also deal with many challenges such as rising of oil price,
fluctuation of product selling price, alternative raw
material supply, and technology mastering. However, we
are very confident to face the future of petrochemical
industrialization due to huge opportunity of flourishing
domestic and export market.
Based on national policy for industry development,
the petrochemical industry sector will be developed using
cluster approach, which is an agglomeration of upstream
and downstream to enhance optimum value chain. This
year, we are entering the new era to boost consolidation
among national industry player welcoming third wave
petrochemical development plan up to 2025. To do so,
we are planning to build large naphtha cracker, aromatic
centre, and integrated refinery – petrochemical plant to
reinforce the structures of national petrochemical
industry.

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 Many Japanese corporations are contributing to
the national industry producing various petrochemical
products. We understand that due to Japan crash-
recovery program, we identify an opportunity for
Japanese corporation to relocate its petrochemical
industry to East Asia Region especially to Indonesia. This
effort could support the electronics and automotive
industries that have been well-developed in ASEAN
countries.

Distinghuished Participants, Ladies and Gentlemen.

Discussing about petrochemical industry, it must
be tied up with recent issues on sustainability of chemical
substances utilization. Today, people are highly aware to
chemical safety management as the prerequisite of a
successful chemical industry in the future. Many
international conventions must be complied such as GHS
(Globally Harmonized System) in the frame of SAICM
(Strategic Approach to International Chemical
Management). We realized that the convention fulfillment
become distinctive competitiveness for ASEAN chemical
industry player to win the global market share of chemical
product.
As a part of international community, Indonesia
also actively participates on chemical safety
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management activities. In the higher level regulation, we
are now drafting Chemical Substance Law to become the
fundamental regulation for national chemical
management policy. Regarding to the Chemical Weapon
Convention, Indonesia has National Law Number 9 year
2008 concerning Prohibition of Chemical Substance as
Chemical Weapon. In the lower level regulation such as
GHS framework, Indonesia also established many
regulation to guide chemical industry player complying
the GHS principles. For operational action, we also
arrange activities on training and capacity building for
hardware, software, and human resource development.

Ladies and Gentlemen

Since 1999, The AMEICC Working Group of
Chemical Industry met annually to discuss about current
issues on chemical industry development. We appreciate
Japan – ASEAN countries whose are consistently hold
the meeting and bring in their up-to-date issues to be
discussed.
Our meeting today is very strategic to bring an
understanding between Japan and ASEAN Countries
related to actual issues such as development of GHS and
Toward SAICM 2020 goals. Today, not only government
officers but also business players are attending this
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meeting here with the same spirit to encourage mutual
cooperation support to the East Asian industry. It is an
opportunity for us today to elaborate novel ideas based
on the status update for chemical management action
plan in each country and to learn about Japanese
experience a well-known established chemical
management system and policy.
Furthermore, I hope that the meeting today should
be followed up with several action plans to be realized
and reported to the next meeting. We wish that Japanese
side arranging many capacity building activities on
chemical industry development. The topic could be
emphasized on the role of chemical management policy
as the basis of East Asian chemical industry
competitiveness using GHS and SAICM cooperation
framework.
To all visiting delegates, I hope you enjoy
attending the meeting and wish you a pleasant stay in
Bali Indonesia. Indonesia is proudly became the host for
the sixteenth meeting today after year 1999 and 2006.
Finally, I would like to declare officially the opening of the
sixteenth meeting of AMEICC - Working Group on
Chemical Industry in Bali Indonesia.

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Congratulation and Success for AMEICC – WGCI
Participants; Have a Pleasant Meeting

Thank you.
Wassalamualaikum.Wr. Wb.

DIRECTOR GENERAL

PANGGAH SUSANTO