RI to get new $7.2b oil refineries

JAKARTA (JP): The Investment Coordinating Board has approved investment commitments of US$7.2 billion for the construction of four oil refineries in South Sulawesi, North Sumatra and East Java.

State Minister of Investment Sanyoto Sastrowardoyo told a hearing of Commission VI of the House of Representative on Friday that the four refineries will be constructed by private companies under a foreign investment licensing scheme.

Two of the refineries, to be located in East Java, will be constructed by PT Buana Ganda Perkasa with an investment of $3.50 billion and by PT Asia Pacific Petroleum with $1.09 billion.

PT Sabang Oil Refinery will construct a refinery in Sabang, Aceh, with an investment of $1.58 billion and PT Indo Mudi Oil Corp another refinery in Pare Pare, South Sulawesi, with $1.03 billion. (fhp)