Allow Private Build Refinery, It Incentives Provided Jonan

Equityworld Futures - The need of fuel oil (BBM) Indonesia reached 1.6 million barrels per day (bpd). But the capacity of oil refineries in the country only 800,000 bpd, about 50% of fuel needs to be met from imports.
To suppress this fuel imports, Minister Ignatius Jonan ESDM issued Decree No. 35 of 2016 on the Development of Domestic Oil Refinery by privately owned companies.
Based on these 35/2016 ESDM, private companies were allowed to build an oil refinery. So refineries no longer the monopoly of PT Pertamina (Persero) only.
"Under the direction of the President, we made a rule that allowed oil refinery built private. Why? To strengthen energy security in the country, it also reduces fuel imports," said Jonan in a press conference at the Ministry of Energy, Jakarta, Wednesday (23/11/2016).
There are several incentives offered to private entrepreneurs who want to build a refinery. First, petroleum products from refineries can be sold to the private sector or abroad. Second, the private sector to build new refineries have also allowed General Fuel Filling Stations (Gas Station) itself. So the fuel does not have to be sold to Pertamina.
"What we support anything? Results precedence sold domestically, but also abroad with consideration of the needs in the country. We also love the Commercial Public License, can go to the gas station itself is," he said.
Fiscal incentives may also be granted for the oil refinery project, according to the Ministry of Finance Regulation No. 130 of 2011 and the Regulation of the Minister of Finance No. 144 in 2012.
In addition, the private sector also entitled to the same incentives as obtained by Pertamina in the construction of oil refineries.
"Direct given permission for general commercial, so the private sector can make its own retail outlets. Both licenses for export. Third, whatever is gained by Pertamina for the processing plant, the government also love," he concluded.