The Indonesian government has directed PT Pertamina to build an oil refinery with a processing capacity of 300,000 barrels of crude oil per day. The project that will involve an investment of $9.7 billion will be financed by funds from the state budget. The government will have participating capital in the project. The move is aimed at reducing the country’s dependence on imports to meet the rising demand for oil. The construction of the refinery is expected to start in 2015–16 with a targeted completion date of 2018. Menawhile, Pertamina also plans to construct two additional refinery projects. The company will team up with Kuwait Petroleum Company to build a refinery in Balongan, West Java, and with Saudi Aramco to build the other in Tuban, East Java. Altogether, the two projects that will involve a combined investment of about $18 billion are expected to be operational by 2018.
