Indonesia’s existing oil refineries are aging and are producing only 60% of the country’s need for 1.5 million barrels of oil per day. In 2012, the country spent about $42.6bn to import oil and gas products.
A special envoy from Kuwait, Yusuf Al Ibrahim, discussed the proposal during his visit to Jakarta.
Kuwait Ambassador to Indonesia Nasser Bareh Al Enezi was quoted by The Jakarta Post as saying that the special envoy met Indonesia Industry Minister MS Hidayat to convey the message.
"The project will be a landmark in our growing strategic relations. In the refinery business, the profits are very small that is why we asked for incentives to cover the costs," Al Enezi added.
Yusuf Al Ibrahim also talked about the newly formed $2bn fund under the framework of Asian Cooperation Development (ACD) that will help the developing counties to reach the United Nations Millennium Development Goals.
