Kuwait to build $2b refinery

JAKARTA (JP): Kuwaiti oil company Hemeco plans to build a US$2 billion refinery on Selayar island, South Sulawesi, State Minister of Investment Hamzah Haz said over the weekend.

He was quoted by Antara as saying the refinery would process crude oil imported from Kuwait and export its products to other Asian Pacific countries. Hamzah was in South Sulawesi to attend a ceremony marking PT Phillips Seafoods Indonesia's first export shipment of crabs from Bojo village.

Hamzah said the company would also produce petrochemical products, but he did not reveal when development of the refinery would actually begin.

He said Hemeco chose Selayar island because it had a strategic location on the sea-lane connecting the Indian and Pacific oceans.

The company would enjoy several benefits, including tax exemptions, which the government offers to any companies investing in the less developed eastern part of Indonesia, Hamzah said. (jsk)