Indonesian refining sector opens up

JAKARTA, November 17, 2016 – Indonesia’s Ministry of Energy and Mineral Resources has announced that it will allow private investment in refineries as part of a new set of rules and regulations aimed at revitalising the sector.

 

Commenting on the decision, the ministry’s director for oil and gas, Wiratmaja Puja, on Thursday said that private developers would be free to sell to other distributors of refined products besides state-owned Pertamina. They will also be permitted to sell independently, including to overseas markets.

While a share of refined products would have to be allocated to the local market, developers “can import [crude] and can also export

,” Puja said. “Many investors have requested permits to invest in private refineries,” he added.

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