The Indonesian government now allows private investors to develop oil refineries in Indonesia, effectively ending state-owned energy Pertamina's (virtual) monopoly. Before this new regulation, private companies had to cooperate with Pertamina to build oil refineries in Southeast Asia's largest economy. The new policy is an effort to boost domestic oil refinery capacity in Indonesia (hence limiting the need for refined fuel imports) and improve the investment climate by opening this industry to the private sector. This sector can also apply for tax incentives.

Lanjut baca ›

Indonesia's crude oil output was strong in the first quarter of 2016 on the back of higher-than-expected oil production of several oil companies in Indonesia. According to Indonesia's oil & gas regulator SKK Migas the nation's oil production totaled 833,000 barrels per day (bpd) in the January-March 2016 period, exceeding the oil lifting target that was set in the 2016 State Budget (830,000 bpd). It also means that the globe's low oil prices at the year-start, touching 12-year lows at around USD $27 per barrel, did not make local oil companies cut back on production rates.

Lanjut baca ›

The government of Indonesia wants to construct the Bontang oil refinery in East Kalimantan through a private-public partnership (PPP). Sudirman Said, Minister of Energy and Mineral Resources, said construction of the Bontang oil refinery is scheduled to commence in 2017. State-owned energy company Pertamina will be in charge of the project and is now searching for investors to participate in the project which is estimated to require a total of USD $14.5 billion in investment.

Lanjut baca ›

As Indonesia's oil production is expected to rise while a new oil refinery in Tuban (East Java) has started to come online, Indonesia's Ministry of Energy and Mineral Resources targets to stop imports of diesel fuel altogether and cut imports of gasoline fuel by 30 percent in 2016. The refinery in Tuban is owned by Trans Pacific Petrochemical Indotama, which was recently acquired by Indonesia's state-owned energy company Pertamina.

Lanjut baca ›

Fuel demand in Indonesia already reached 1.6 million barrels per day (bpd). However, oil refining capacity only stands around 1.1 million bpd, implying that 43 percent of fuel consumption in Indonesia needs to be imported from abroad. Oil refining capacity today is roughly the same as it was 15 years ago, meaning that there has been limited progress in development of Indonesia's downstream oil industry. Without adding refining capacity, Indonesia is on track to become the world's largest fuel importer within the next decade.

Lanjut baca ›

Pada hari Senin (21/12), Pemerintah Indonesia meluncurkan paket stimulus ekonomi ke-8. Paket terbaru ini dari serangkaian paket kebijakan - semuanya bertujuan untuk mendongkrak pertumbuhan ekonomi - mencakup tiga kebijakan. Pertama, menghapuskan pajak impor untuk 21 kategori suku cadang pesawat. Kedua, insentif fiskal dan non-fiskal untuk pengembangan kilang minyak. Ketiga, Pemerintah Pusat akan merampingkan dan menyelaraskan proses akuisisi lahan untuk pembangunan infrastruktur di seluruh negeri menggunakan "kebijakan satu-peta" yang baru.

Lanjut baca ›

The government of Indonesia plans to add new fuel refineries soon after such development has been postponed for many years. Today, Indonesia's total of oil refineries have roughly the same combined production capacity as a decade ago, indicating that limited progress has been made. In fact, domestic oil output has experienced a steady downward trend for almost two decades due to a lack of exploration and investments amid weak government management, bureaucracy, an unclear regulatory framework and legal uncertainty.

Lanjut baca ›