Press TV cited Indonesian Energy and Mines Ministry oil and gas acting director general Naryanto Wagimin as saying to reporters in Jakarta that Iran is planning will construct the refineries with an investment of $3bn in Indonesia’s western provinces of Banten and West Java.
Wagimin said: "It’s still at the initial stage. We will need a further meeting to discuss the realization of their plan. We welcome them. We will have a working group meeting to follow this up.
Additionally, Indonesia identified Iran’s crude oil suitable for processing at Cilacap refinery in the southwestern part of Central Java Province, Wagimin said.
"Thus, it [Iran] plans to build a refinery that will be supplied by its crude oil."
Meanwhile, Iran’s Nakhle Barani Pardis has signed an agreement with Indonesian PT Kreasindo for the construction of oil refineries in Indonesia.
Kreasindo director Rudy Radjab said the Iranian oil firm will deliver between 20,000 and 300,000 barrels per day (bpd) of crude oil over a 20-year period to the refineries.
About 30% of finance for the refineries will be provided by Nakhle Barani Pardis while Kreasindo will fund the remaining 70%, according to the report.
