Indonesia asks Iran to invest in Indonesian oil industry

Indonesia has invited Iran to invest in its oil industry, a presidential spokesman said Friday. The sector has suffered from neglect in recent years.

President Susilo Bambang Yudhoyono made the offer during talks with his Iranian counterpart on the sidelines of the U.N. General Assembly in New York last week, Dino Djalal told reporters in Jakarta.

"The president invited Iran to participate in building refineries in Indonesia and to help Indonesia to increase oil production," Djalal said without elaborating.

Indonesia is Asia's only member of OPEC, but was forced to begin importing fuel last year after a decade of under-investment in the sector blamed on excessive red tape, corruption and legal uncertainty.

With the global cost of oil surging, the country desperately wants to attract investment to tap its remaining reserves.(*)