Govt keeps urging investors to build oil refineries

The government has granted 15 licenses to develop oil refining plants in Indonesia, but so far none of them has materialized, oil and gas director general Rachmat Soedibjio said on Friday.

?But we are continuing to request investors awarded with such licenses to develop their projects,? Rachmat told reporters.

Rachmat will soon be sworn in as chief of the newly formed Implementing Body which holds the highest authority over the country?s oil and gas sector.

The director general said the government could not give incentives to investors wishing to build oil refineries because existing oil and gas law does not mention such policies.

Indonesia needs more oil refining plants so as to keep up with the rising demand for fuel on the domestic market.

As many as nine oil refineries are presently in operation in Indonesia. They belong to the government and are operated by state oil and gas firm Pertamina.

The facilities are located in Pangkalan Berandan (N. Sumatra); Dumai and Sungai Pakning (C. Sumatra); Musi (S. Sumatra); Balikpapan (E. Kalimantan); Cepu and Cilacap (C. Java); Balongan (W. Java); and Kasim (Papua).

The country?s domestic demand for fuel presently amounts to 52.7 million kiloliters annually. Between 15 percent and 20 percent of the demand has been fulfilled from imports. (godang)