Indonesia seeking for investors to build oil refinery

"We want to hold an international auction . So far invitation has been sent to 20 foreign companies," Deputy Finance Minister Bambang Brodjonegoro said.
Jakarta (ANTARA News) - The government plans to offer an oil refinery project to foreign investors through an international tender.

"We want to hold an international auction . So far invitation has been sent to 20 foreign companies," Deputy Finance Minister Bambang Brodjonegoro said here on Monday.

Bambang said consultations were already held with the 210 companies in Singapore before auction is held .

"We want to hear what the would be investors want and we told them what we could provide," he said.

He said in the consultations, the government told the investors that a 400 hectare plot of land has been made available and incentives in tax facility would be offered.

He said a feasibility study on the project to be built under a Public Private Partnership is being carried out.

The process of auction is to be wrapped up this year as the feasibility study has been almost completed, he said.

He said construction of the oil refinery will be in a package with a plan to develop downstream petrochemical industry .

"It will be integrated with a petrochemical industry. But we will see if their offer agrees with what we want," he said.

He said he hopes the PPP project would not be delayed as a number of other projects over difficulty in land clearing.

"We have not succeeded in land clearing, but we have found free and clear land that we dont have to face land clearing problem." he said. (*)

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