Indonesia’s government plans to launch new refinery and power plant projects in early 2015, aiming to meet domestic demand for petroleum products and electricity.
Sudirman Said, minister of energy and mineral resources, said late Wednesday that the government plans to increase refining capacity by 300,000 barrels per year and develop power plants capable of providing an extra 35,000 megawatts.
State-run energy company Pertamina and electricity producer Perusahaan Listrik Negara will lead the projects, partnering with strategic investors. Said expects those investors will provide expertise and, in the case of the refinery, help to secure oil supplies.
Said explained that the refinery project tender will be closed in 2015, with construction to start by 2016. Total investment in the refinery is projected to reach $10 billion over three years of development.
Finance Minister Bambang Brodjonegoro said that to attract investors, the government plans to offer incentives, such as a 10-year tax holiday.