Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Kartini Laras Makmur, Robert Sidauruk
Ismayatun, member of Commission VII at the House of Representative, has suggested the Government provide incentives for petroleum and gas refinery construction projects. According to Ismayatun, incentives are needed to attract more foreign investors.
Ismayatun’s view relates to the current mini Liquefied Petroleum Gas (LPG) refinery project at Musi Banyuasin. The refinery is now being progressed by PT Hokasa, the bid winner for the project engineering, procurement, and construction (EPC).
Ismayatun explained that petroleum and gas refinery construction projects are not considered attractive to investors.
This business, Ismayatun says, involves high investment costs which only yield a smaller profit compared to other businesses in similar sectors.
Accordingly, the Government needs to provide incentives to attract foreign investors who wish to operate petroleum refineries in Indonesia.
“Such incentives are important to investors,” says Ismayatun.
In response, the Ministry of Energy and Mineral Resources (ESDM) argues that the Government has provided the LPG refinery project at Musi Banyuasin with various support including land procurement of 3.2 hectares and also necessary equipment.
However, Muhammad Hidayat, Director of Downstream Oil and Gas Empowerment at the Ministry of ESDM, admits that the current devaluation of the Rupiah’s against the US Dollar may affect the production cost of the project.
“The contractor is advised to perform the project in an efficient manner due to the current economic circumstances,” added Hidayat.
To accelerate gas refinery development in Indonesia, Hidayat hopes that the LPG refinery project at Musi Banyuasin will provide a positive impact for local gas companies to develop similar mini LPG refineries to service the needs of communities in surrounding areas.
(hot/kc)
Kartini Laras Makmur, Robert Sidauruk
Ismayatun, member of Commission VII at the House of Representative, has suggested the Government provide incentives for petroleum and gas refinery construction projects. According to Ismayatun, incentives are needed to attract more foreign investors.
Ismayatun’s view relates to the current mini Liquefied Petroleum Gas (LPG) refinery project at Musi Banyuasin. The refinery is now being progressed by PT Hokasa, the bid winner for the project engineering, procurement, and construction (EPC).
Ismayatun explained that petroleum and gas refinery construction projects are not considered attractive to investors.
This business, Ismayatun says, involves high investment costs which only yield a smaller profit compared to other businesses in similar sectors.
Accordingly, the Government needs to provide incentives to attract foreign investors who wish to operate petroleum refineries in Indonesia.
“Such incentives are important to investors,” says Ismayatun.
In response, the Ministry of Energy and Mineral Resources (ESDM) argues that the Government has provided the LPG refinery project at Musi Banyuasin with various support including land procurement of 3.2 hectares and also necessary equipment.
However, Muhammad Hidayat, Director of Downstream Oil and Gas Empowerment at the Ministry of ESDM, admits that the current devaluation of the Rupiah’s against the US Dollar may affect the production cost of the project.
“The contractor is advised to perform the project in an efficient manner due to the current economic circumstances,” added Hidayat.
To accelerate gas refinery development in Indonesia, Hidayat hopes that the LPG refinery project at Musi Banyuasin will provide a positive impact for local gas companies to develop similar mini LPG refineries to service the needs of communities in surrounding areas.
(hot/kc)