Construction of Papua refinery plant awaits new regulation

Pertamina said that the decision whether or not it would go ahead with its plan to build a refinery plant in Papua will be made only after the government issued the new regulation in the fuel distribution in the country, Koran Tempo reported on Monday.

Pertamina's director for processing Suroso Atmomartoyo said in Jakarta on Saturday that the state owned oil and gas company needed a clear guideline before deciding to build the refinery plant in the province.

Pertamina said earlier that it would build a refinery plant in Kasim area in Papua in order to speed up the fuel distribution to the province which at present received its fuel supply from Balikpapan, East Kalimantan.

Although the construction of the refinery plant would significantly cut the distribution costs, Pertamina should first know the rule of the game before going ahead with the refinery project.

"The construction of the refinery plant will certainly makes Pertamina's fuel more competitive especially when the government begins to allow private companies to enter the fuel retail market," he said. (*)