Hamoco awaits change in fuel policy

The plans by PT Hamoco Selayar Indonesia to develop an oil refinery on the Selayar Island, South Sulawesi, could not yet be realized until the government changed the domestic fuel policy, according to state-owned oil and gas firm Pertamina processing director Arifin Nawawi.

Arifin said that Hamoco as well as other companies planning to develop oil refinery facilities wanted the government also allow them to enter the domestic retail market.

The government has allowed investors to develop oil refinery facilities since 1984 and there has already around 14 investors who have expressed interest. But so far none of them have realized the investment plans.

Hamoco Selayar Indonesia is backed up by investors form the Middle East. Last year the company said it plans to invest some US$1.6 billion to develop oil refinery facility.

Arifin said that Hamaco was also facing opposition from local people on concern of possible environmental destruction if the company realized its plans. (*)