South Java revives refinery project in C. Java

PT South Java Refinery (SJR) is reviving its plan to build its $3 billion refinery plant in Purwokerto/Kebumen district in Central Java.

A deputy chairman for services and facilities at the office of state minister of investment and state enterprises development, PM Yus'an, said his office had given its approval for the company to revive its plan to build the refinery plan.

"We approved PT South Java Refinery's proposal last July," he said.

PT SJR secured license No. 470/1/PMA from the government on August 6, 1998.

SJR is 85 percent owned by Spitsbergen Oil & Gas Ltd of Britain and 15 percent by PT Felima Orient Facific.

The planned refinery plant will have a production capacity of 10,000 of LPG barrels per day (bpd), 40,000 bpd of gasoline, 30,000 bpd of kerosene, 35,000 bpd of gas oil/diesel oil, and 20.000 bpd of other fuels.

With the revival of the refinery plant, the value of new foreign investment approved by the government in July reached US$3.112 billion in 93 projects, a sharp increase from $65.46 million in 96 projects recorded in June.

Besides new investment, the government had also approved a number of expansion projects by foreign-owned companies. The value of expansion projects in July reached US$582 million, up from $69.77 million recorded in June.

Foreign investment value in the first half of this year reached $1.918 billion in 699 projects, of which 567 projects worth $1.343 billion were new investment projects and 132 projects worth $$574.7 million were expansion projects. (*)