"The presidential regulation will serve the legal basis for the accelerated construction of refineries," he said at a press conference held at the Office of Directorate General of Electricity on Monday.
The implementation of the regulation is necessary as during the next decade, Indonesia will need four more refineries with a combined capacity of 300 thousand barrels per day to store the national oil production, he said.
On its part, decision makers are in the middle of assessing four options related to the construction of refineries. One of the options is that the refineries will be built by corporate bodies or by the government in association with corporate bodies, he said.
The government is also considering assigning state oil and gas company Pertamina to take over the task, he said.
Some have suggested that the construction of refineries will be borne by the state budget.
"Among the several options available, several investors have proposed that the refineries be built by corporate bodies. But at this moment the government is still assessing the choices," he said.
Hopefully, the provisions, which are aimed at encouraging the construction of refineries, will strengthen national energy security, he added.
In addition, the activity is also intended to make domestic industries stronger and able to master technology in the downstream sector and processing activity, he said.(*)
Editor: Heru Purwanto
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