JAKARTA - Coordinating Minister for Economic Affairs Airlangga Hartarto straightened out the confusing news that said Indonesia would build a refinery in the United States. Airlangga said, Indonesia will build 17 modular refineries in Indonesia and not in America.
"We don't build refinery in America, but build Refinery in Indonesia," he said when speaking at the Daily Round Table Talk, Tuesday, July 29.
Airlangga explained, this is a directive from President Prabowo Subianto so that oil storage is not only concentrated in one place but is spread across various regions to save logistics costs.
Later the refinery will be built in small size according to the needs of the surrounding region. What will be purchased from the United States is engineering procurement and construction (EPC)
"That's what was bought in America was engineering procurement and construction, the EPC, so that the equipment will be brought to Indonesia later," continued Airlangga.
Separately, the Danantara Investment Management Agency (BPI) is currently still reviewing the construction site of 17 modular refineries worth US$8 billion. One option that is also considered is to build the refinery in the United States (US).
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Danantara Chief Executive Officer (CEO) Rosan Perkasa Roeslani revealed that the cooperation project with the United States regarding the construction of the refinery is still in the early discussion stage.
"So, this is just the initial agreement, while the negotiation process is still detailed. The one led by the Coordinating Minister's office, so this is still ongoing, and we are of course participating in the process to ensure that it runs with the existing criteria," he told the media crew, Monday, July 27.
He added that the location of the refinery construction is still under preliminary studies conducted with the Ministry of Energy and Mineral Resources (ESDM) in reviewing the location of the construction.
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