REPUBLIKA.CO.ID, JAKARTA - Government will open international tender for foreign investors to manage new oil refineries in Indonesia. The auction will be conducted at the first quarter of 2014. This step is taken to address the deficit problem over high oil import and consumption after fuel price increases in Indonesia.

Deputy Minister of Finance, Bambang PS Brodjonegoro said that government has determined some criteria for foreign contractors based on experiences and international standards.

"We will give some incentives in form of tax holidays for 10 years for them," Brodjonegoro said recently.

The refineries are new wells to increase national oil production. It based on Pertamina's due diligence, located at the edge of sea, 600 to 1,000 hectares per well. The international tender not uses the state budget.

In third quarter of 2013, oil imports increased from 9.537 billion USD to 10.668 billion USD. Current account deficit reached 8.4 billion USD or equaled to 3.8 percent of gross domestic product (GDP).

Government only projected the oil lifting worth 870 thousand barrels per day. The figure is still not enough to meet domestic consumption. Therefore, oil imports and gas can be solutions. Government will also manage oil imports by controlling consumption of subsidized fuel. 

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