Regulation Passed; Pertamina Begins Refinery Construction
9 February 2016 17:28 WIB
TEMPO.CO, Jakarta - The government is targeting for Bontang refinery's groundbreaking to take place next year. Energy and Mineral Resources Sudirman Said ensured this following the ratification of Presidential Regulation No. 3/2016 on Refineries.
The construction project of Bontang refinery in East Kalimantan will be done through a public-private partnership (P3) scheme.
"Pertamina has been appointed to be in charge of the project," Sudirman said in Jakarta Tuesday, February 9, 2016.
As the party in charge, Pertamina will seek private partners, accompanied by international consultants appointed by the Finance Ministry.
Indonesia is estimated to need 2.6 million barrels of oil a day (MMbod) by 2025. With the Refinery Development Master Plan (RDMP) and new refineries, the state can supply 2.2 to 2.3 MMbod.
"Without new refineries, we could be the world's largest oil importer," said Edwin Hidayat Abdullah, deputy for energy, logistics and tourism division at the Ministry of State-owned Enterprises.
To build Bontang refinery, the cost of investment is US$14 billion. Another refinery in Tuban requires an investment worth US$13 billion.
"We don't want to stop in just fuel oil, we want to [continue] downstream because that's where the added value is," Edwin said.
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