Investors plan to build two crude refineries in Java

By Bambang Atmaja & Febry Silaban

Two local companies, teaming up with foreign investors, plan to build two oil refineries with combined capacity of between 250,000-300,000 bpd on Java Island, said Vice Minister of Energy and Mineral Resources, Susilo Siswo Utomo on Friday.

He said that the refineries were expected to be on stream in 2018, and that the output will be dedicated entirely for the domestic market. Susilo, however, declined to disclose the name of the investors, nor the specific location of the projects.

He said that the investors claimed that they have secured the necessary land requirement for the refineries.

The government has been struggling to push for the development of domestic refineries to process crude into fuel products in a bid to help reduce the country?s widening current account deficit partly due to the huge import.

Editing by Reiner Simanjuntak