Business Times 4 Jun 09;
(JAKARTA) Indonesia's state oil firm Pertamina said yesterday it plans to build new refinery capacity totalling 700,000 barrels per day (bpd), part of efforts to curb costly oil product imports by South-east Asia's biggest economy.
Pertamina's nine refineries have a combined capacity of around one million bpd. But they only supply 70 per cent of domestic oil product consumption and 30 per cent comes from imports.
Indonesia has previously signed a series of initial agreements with countries such as Iran and China on new refineries but so far none has materialised and some officials have said the downstream sector is not attractive for investors.
Pertamina's president director, Karen Agustiawan, said the expansion plans included new refineries in Java and adding to capacity in another refining centre on the heavily populated island.
'We will build a new refinery in Bojonegara, West Java, Tuban in East Java and we will increase Balongan's refinery capacity. Total combined capacity is 700,000 bpd,' Ms Agustiawan told reporters.
Pertamina had said previously it would increase capacity at Balongan in West Java from 125,000 bpd to 250,000 bpd.
Vice-President Jusuf Kalla, who had held talks with Ms Agustiawan, told reporters Indonesia must stop depending on importing oil products. 'We must become self-sufficient in oil products within two to three years so that we will not import oil products,' Mr Kalla said.
Ms Agustiawan said Pertamina would have partners to build new refineries, without elaborating.
Pertamina has signed memorandum of understandings on joint ventures with Iran and China's Sinopec Corp to build refineries in joint ventures, but none has been built\. \-- Reuters
