REPUBLIKA.CO.ID, JAKARTA - A private company plans to build an oil refinery to produce oil fuel with a processing capacity of 150,000 barrels of crude oil per day. The project was to be completed and operational in 2018, Deputy Minister of Energy and Mineral Resources Susilo Siswoutomo said on Friday.

The refinery would import crude oil as feedstock, Susilo said without naming the investor.

"The location has been selected in Java and the technology, and fund had been available," he said.

The government guaranteed that state energy company PT Pertamina would buy its fuel production to reduce dependence on imports for fuel, he said. The price would follow the prevailing price in international market. He added there was another investor indicating interest in building a refinery with a processing capacity of 100,000-150,000 barrels of crude oil per day.

"Therefore, there are two investors proposing to build oil refineries with a total processing capacity of 250,000-300,000 barrels of crude oil per day," he said.

He said he would meet with the Capital Investment Coordinating Board to check the market and procurement process for refinery to be built under the government and private partnership scheme (KPS),

The country has relied more on imports for its fuel requirement, and imports of fuel have increased from year to year causing deficits in nits trade and current account balances.

The country has not built refinery in the past several years increasing dependence on imports. 

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