The Banten provincial government has signed a preliminary agreement with PT Elnusa to build a major oil refinery at an estimated cost of Rp 5 trillion (US$550 million), as well as an oil-storage tank farm, in the province. The refinery, which is likely to be built at Bojonegara in Banten, will process heavy crude oil with a capacity of 300,000 barrels of refined products per day.

Facing increasing competition in the retail gasoline sector, state oil and gas firm PT Pertamina plans to increase the number of gas stations selling high-quality biofuel, known as Biopertamax, from 1 at present to 24 by the end of this month. Biopertamax will be available in 15 more gas stations in Jakarta, five in Surabaya and three in Malang, East Java. The only gas station currently selling Biopertamax is located in Senayan, South Jakarta. The retail price of Biopertamax is Rp 5,600 (61 U.S.