JAKARTA. The government will soon sign the debt-to-shares conversion regulation to revitalise the aromatic industry in Tuban, East Java.

Director-General of State Assets Isa Rachmatarwata said that the government remains committed to optimise PT Tuban Petrochemical Industries' (TPI) assets to support the development of the national petrochemical industry. The plan to convert TPI's debt into government-owned shares will also materialise to increase the government's stake in TPI from 70% to 95.9% through debt restructuring.

"The regulation will be issued in the near future," said Mr Rachmatarwata on the sidelines of a discussion entitled The Optimisation of the National Petrochemical Industry, Thursday (12/9).

The revitalisation of the aromatic industry through the optimisation of TPI's assets will significantly affect the national petrochemical industry and the manufacturing sector as well as the national economy.

Furthermore, Mr Rachmatarwata said that the government is also entitled to 4.1% of TPI's remaining shares. However, the portion is sourced from interests and debt fines of the previous shareholder.

TPI, which was once among the largest and most modernised petrochemical companies, suffered from a number of problems which caused it to shift to fuel production. Upon the revitalisation of the company, benzene, toluene, and xylene (BTX) imports will gradually decline from 90% to 80% in the next five years. (AM/MS)