REPUBLIKA.CO.ID, JAKARTA - Indonesian government will build two oil refineries by 2018 and another one by 2019 to boost the oil supply amid the high demand. The new refineries are expected to stabilize the state's oil price from the fluctuating global oil price.

The Minister of Energy and Mineral Resources Jero Wacik said the construction could be accelerated with new National Medium-term Development (RPJMN). But, according to plan, the refineries can start producing in 2018. The three refineries have production capacity of 300,000 barrel per day. It means that the state has additional 900,000 barrel per day.

Jero Wacik said the two refineries would be built in Bontang, East Kalimantan in Pertamina's area, while location for another was still considered. Government has given some incentives to speed up the construction. The incentives, such as tax-exempt, have been proposed to the Ministry of Finance.

The two refineries was planned to be built in Balongan of West Java and Tuban of East Java. Due to the increasing price of those areas, the location is moved to Bontang.

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