International institution to help make FS for refinery project

The Ministry of Finance will be allowed to seek the assistance of international institution in carrying out feasibility study (FS) for oil refinery projects in the country to be jointly developed with private investors through the so-called public private partnership (PPP) scheme.

Bisnis Indonesia reported on Tuesday that the role of international institution in infrastructure projects such as refinery based on PPP scheme, which will receive government incentives, is now made possible following the introduction of a new Minister of Finance Regulation No 129/PMK.08/2016, which is a revision of the previous 2015 ministerial regulation.

The paper quoted Robert Pakpahan, Director General for Management of Financing and Risk, as saying that the role of international institution is necessary as refinery project is quite complex.

But he said that the role of the international institution will be limited to help in making feasibility study for the project so that the government can put them to tender. (*)