Local firm to build oil refinery plant on Batam island
Friday, September 22 2000 - 03:30 AM WIB
Local company PT Permata Kreasindo Jaya plans to build a oil refinery plant on Batam island, with total investment of about Rp 10.9 trillion (US$1=Rp 8,500), Bisnis Indonesia reported on Friday.
Yus'an, a senior official at the Investment Coordinating Board, said in Jakarta on Thursday that the company's application to obtain a permit to build an oil refinery plant on the island had reached his office last week.
"The total investment for the oil refinery, which will be built on a 200-hectare land spot, is about Rp 10,9 trillion, involving about 546 local and foreign workers," he was quoted as saying by the daily.
About Rp 2.1 trillion of the total investment commitment would come from the company's equity while the remaining Rp 8.78 trillion would come from bank loan, he said. He added the company would produce about 1.7 million barrels of liquefied petroleum gas (LPG) a year, 7.56 million barrels of gasoline a year, 10 million barrels of kerosene a year and 24.30 million barrels of diesel oil a year.
The refinery is also expected to produce about 3.21 million barrels of chemical naphtha, 2 million barrels of asphalt and 99.62 million barrels of sulfur a year, he said. "A larger part of the fuel products will be exported, with total foreign exchange earnings of about US$395 million a year," he said.
Another company PT Mits Indonesia also submitted last week to the investment office to build two oil refinery plants in Aceh and West Nusa Tenggara (NTB). Each refinery, which will be built with investment of about $2.8 billion, will have a processing capacity of about 500,000 barrels of crude oil per day.
At least 14 companies have been licensed to build oil refinery plants in the country but none of them have started their projects. Private refinery plants are at present barred from directly selling their fuel products in the domestic market.
The government, however, will soon amend the oil law, which will among others open up the sales of fuel products in the domestic market to private companies. (*)