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Jakarta Post

RI’s dream for more oil refineries hits govt intransigence

  • Amahl S. Azwar

    The Jakarta Post

Jakarta   /   Wed, February 13 2013   /  08:02 am

Indonesia needs to build more oil refineries to ensure its future energy security. However, the government has yet to provide fiscal incentives to woo foreign investors to jump-start the construction of fuel processing plants.

Pertamina president director Karen Agustiawan said on Tuesday that the state-run oil and gas firm was still waiting for the government to approve requests from its two partners, Kuwait Petroleum and Saudi Aramco, over incentives for two refinery projects.

“The problem lies with the feasibility studies from the third parties on fiscal incentives. We have presented the proposals to the government and we are still awaiting approval,” she said.

In collaboration with its two respective partners, Pertamina plans to build two fuel refineries, each with a production capacity of 300,000 barrels per day (bpd).

Both refineries, requiring a c...