Petronas plans to enter Indonesia?s downstream industry

Malaysian state owned oil company Petronas has expressed its keen interest in investing in the Indonesian oil downstream industry to take the advantage of the liberalization of the country?s oil and sector, Kompas reported on Tuesday.

Petronas? managing director, Anwar Ahmad, said in Kuala Lumpur that the Malaysian oil giant was still waiting for the issuance of the Indonesian government?s regulation on the country?s oil downstream industry.

He said that the Malaysian giant should first know if the regulation would really allow the operation of foreign companies in the Indonesian downstream industry before making a firm investment decision.

According to the new oil and gas law, downstream operations such as retail activities, which are now solely handled by Pertamina will be opened to both local and foreign companies beginning 2004. The government is currently preparing a legal instrument which will regulate the operation of private companies in the downstream industry. (*)