Indonesia wants Iran refinery investments

Indonesia has called on Iran to invest in its oil refinery projects, saying this is part of a wider policy meant to address the country's rising fuel consumption.

"We have asked [Iran] to invest either in Bontang refinery [in East Kalimantan] with [state-owned oil and gas firm] Pertamina or establish its own refinery as we already allow 100 percent [foreign] ownership in the business," Energy and Mineral Resources Ministry director general for oil and gas IGN Wiratmaja Puja was quoted by media as saying on Monday.

The request, Wiratmaja said, had been conveyed last week to a visiting Iranian delegation led by Communications and Information Technology Minister Mahmoud Vaezi, The Jakarta Post reported.

Wiratmaja added that Indonesia was currently buying liquefied petroleum gas (LPG) from Iran and was also planning to buy crude oil from the country, as well.

"Should Iran invest in refineries here, it can supply the refineries with its crude oil," he said.

In April, Puja announced that Indonesia is considering a decision to build a refinery with Iran, stressing that the move would be meant to address Indonesia’s rising fuel consumption.

The official further added a plan was on agenda to increase Indonesia’s refining capacity by 500,000 barrels per day (bpd) in the next seven years, adding that Iran was on board to provide the required crude oil. 

Iran is conducting a feasibility study to the same effect and examining its economic viability, Indonesia’s Ministry of Petroleum was quoted by media as announcing.

Indonesia is building four refineries, each with capacities ranging between 300,000 bpd and 350,000 bpd.

SS