Silicone Oil in Indonesia- Indonesia's Industrial Development & Silicone Oil

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Indonesia is located in southeastern Asia, also known as the "Thousand Island Country", with 17508 islands of all sizes, with Bali being the most shining. As the largest archipelagic country in the world, Indonesia straddles the northern and southern hemispheres, lies in two oceans and two continents (the Pacific Ocean, the Indian Ocean; Asia, Oceania), and guards the Strait of Malacca, Sunda Strait, Lombok Strait and other important international trade routes. Indonesia is the largest country in ASEAN, with a population, area, and total economic output accounting for about 40%. Indonesia has a land area of 1.9 million square kilometers and a sea area of 3.17 million square kilometers. Indonesia has a population of approximately 270 million, ranking fourth in the world; Economy of Indonesia's economy has been growing at around 5% for many years, ranking first among major economies in the world. According to data from the Indonesian Central Bureau of Statistics (BPS), the GDP in the first quarter of 2022 increased by 5.01% year-on-year.

Indonesian President Joko announced at the inauguration ceremony for his second term in 2019 that Indonesia is committed to achieving its vision of becoming a developed country on the 100th anniversary of its founding (i.e. 2045). At that time, Indonesia's GDP is expected to reach $7.3 trillion, with a per capita GDP of $25000, ranking among the top five economies in the world. In order to actively respond to the impact of the epidemic, accelerate economic recovery, and promote industrial transformation and upgrading, the Indonesian government attaches great importance to the development of emerging fields such as green economy and digital economy. With its advantages in natural resources, consumption potential, and labor, Indonesia has significantly increased investment and support in emerging fields such as renewable energy, electric vehicles, downstream high value-added industries in mining, electronic communication, and healthcare.

Indonesia has close relations with neighboring Asian countries and has established member states for the ASEAN (ASEAN) and the East Asia Summit. Indonesia has been a member of the United Nations, the Non Aligned Movement and the Organization of the Islamic Conference since 1950, and has joined the ASEAN Free Trade Area, the Cairns Group and the World Trade Organization. Indonesia is a member of the G20 and will assume the rotating presidency of the G20 in 2022.

Industries of Indonesia

1.      Oil and Gas.

Indonesia is rich in oil and gas resources. The Oil reserves announced by the government are 9.7 billion barrels, equivalent to 1.31 billion tons, of which the verified reserves are 4.74 billion barrels, equivalent to 640 million tons. Indonesia's natural gas reserves are 176.6 trillion standard cubic feet (TCF), equivalent to 4.8-5110 trillion cubic meters. The largest oil company in Indonesia is Pertamina. According to the announcement of Fortune in 2022, Pertamina ranked 223.

2.      Agriculture, Forestry and Fisheries.

Indonesia is a major agricultural country with a total arable land area of approximately 80 million hectares. The main Cash crop are palm oil, rubber, coffee and cocoa. Indonesia's Forest cover is 54.25%, reaching 100 million hectares, making it the third largest Tropical forest country in the world. The largest forestry and papermaking enterprise group in Indonesia is Sinar Mas. The fishery resources are rich, with up to 7000 kinds of marine fish. The government estimates that the potential catch is more than 8 million tons per year.

3.      Mining Industry.

Indonesia is rich in mineral resources and widely distributed. The main mineral products include tin, aluminum, nickel, iron, copper, tin, gold, silver, coal, etc. The main state-owned mining companies in Indonesia are Antam and PT Timah Tbk. Mining is a traditional hot industry for foreign investment in Indonesia. Indonesia is extremely rich in mineral resources and has become an important source of supply for the international coal and nickel, iron, tin, gold and other metal mineral products market. It has attracted a large number of foreign investment in the upstream mining industry to stabilize raw material supply, especially in May 2012 when the Indonesian government imposed a 20% export tax on 65 types of mineral products and required foreign investors to invest and establish smelting and processing plants in Indonesia, which has stimulated foreign investment in the downstream mining industry, Currently, mining and metallurgy have become the largest foreign investment industry in Indonesia.

4.      Industrial manufacturing industry.

Indonesia's industrialization level is relatively low, with over 30 different types of sectors in the manufacturing industry, mainly including textiles, electronics, wood processing, steel, machinery, automobiles, pulp, paper, chemicals, rubber processing, leather, shoemaking, food, beverages, etc. The largest steel company in Indonesia is state-owned Krakatau Steel.

5.      Tourism Industry.

Indonesia is very rich in tourism resources, with many beautiful tropical Natural landscape, rich and colorful ethnic cultures and historical sites. It has unique conditions to develop tourism. Affected by the COVID-19, the number of international tourists visiting Indonesia in 2020 will be 4.02 million, down 75.03% from 16.1 million in the same period in 2019. Under strict entry control measures, the number of foreign tourists received in Indonesia decreased by 61% year-on-year in 2021.

Applications of Silicone Oil

For oil and gas, silicone oil sometimes to be used as some kind of auxiliaries to add into the oil or be used to make the container or the film that contain the liquids. For agriculture, especially in the tropical area, silicone oil could protect the growth of crops effectively and silicone oil could be used to defoam the foams occurred in the process of manufacturing matured food as well. For industrial manufacturing, silicone oil is used to be e lubricant, curing agent and many other agents as well. For tourism, silicone oil may not be that directly to be used. However, silicone oil could be the raw materials to many souvenirs and other popular products that could be sold to tourists like silicone rings, some dolls and other cute products.