Minister signs regulation on refinery development by private investors

Minister of Energy and Mineral Resources Ignasius Jonan had on November 10 signed Ministerial Regulation No 35/2016 on the development of domestic oil refineries by private entities.

The ministry said in a statement on Thursday that the new regulation was issued to help accelerate the development of new oil refineries at home as part of efforts to cut down fuel imports and ensure domestic supply of fuel products.

According to the regulation, the government can provide fiscal and non-fiscal incentives to the private investors. The regulation also stipulates that private entities interested in developing domestic refineries will be given processing business permit. The required crude for the refineries can both come from import or domestic supply. The output will be prioritized for the domestic market.

The Directorate General of Oil and Gas at the ministry will be in charge of supervising the development and operation of the refineries.

Editing by Reiner Simanjuntak