Refinery investors told not to rely on Pertamina as off-taker

Petromindo|Thomas

Minister of Energy and Mineral Resources Ignasius Jonan advised investors planning to develop fuel refineries in the country not to rely on state-owned oil and gas firm PT Pertamina as the off-taker of their products.

Speaking at the opening of Mining and Energy Expo 2017 on Tuesday, Jonan advised investors to set up integrated refinery operation including getting the required crude oil on their own, process the crude at the refinery, and set up retail fuel station to sell the fuel output from the refinery.

He said as quoted by a ministry statement that the government would facilitate the investors in getting the required permits to set up integrated refinery operation. He added that the investors can also partner with Pertamina, and that the government will allow the state company to have minority stake in the joint venture.

Jonan said that there are many investors who are interested in developing domestic refineries but want Pertamina to become the off-taker. ?But if always demanding Pertamina to be the off-taker, that?s not creative,? he said.

Development of fuel refineries in the country has been one of the government national strategic programs amid rising fuel consumption at home. Domestic fuel consumption is estimated at 72 million kilo liters per year, but domestic production stands at only around 39 million kilo liters, with the remainders have to be imported.

Editing by Reiner Simanjuntak