Indonesia needs two new refineries in five years

Maizar Rahman, the Indonesian governor at theOrganization of Petroleum Exporting Countries (OPEC), has called on the government to soon realize its plan to build new refinery plants so that the country's future fuel needs could be fulfilled by local refinery plants.

He said that Indonesia would need at least two refinery plants, each with a capacity of 300,000 barrels per day, to meet its fuel needs within the next five years. Investors interesting to build a new refinery plant such as PT El Nusa should be supported,he added.

In addition to El Nusa, there are three more companies seeking for the government's permits to build new refinery plants in the country. They include Muba which will build a refinery plant with a capacity of 500,000 bpd, Hemoco Selayar (250,000 bpd) and PT Intan Jaya (300,000 bpd).

Erie Soedarmo, the director for oil and gas marketing at the ministry of energy and mineral resources, has said in Jakarta these companies had asked the government to provide them with fiscal incentives as the compensation for the low profit margin they would receive from the oil refinery operations. (godang)