"The reason the government and Pertamina to build new refineries because the gains are smaller than the upstream sector," said oil analyst Kurtubi when contacted Kompas.com, on Sunday (09/22/2013) morning.
He said Indonesia's dependence on fuel oil (BBM) imported from Singapore due to the capacity of the existing refinery is currently under capacity required.
As a result, despite all the oil refineries in full operation, the resulting fuel is far below the requirement. For information, since officially established in 1957, PT Pertamina (Persero) has only six units of an oil refinery, with a capacity of 1.05 million barrels per day (bpd).
The refinery's sixth Dumai Refinery, Refinery Plaju, Balikpapan refinery, Cilacap Refinery, Refinery Refinery Balongan and Sorong. Of the total capacity, refineries can only produce as much fuel 700000-800000 barrels per day.
Meanwhile, Indonesia's oil consumption reached 1.5 million-1, 6 million bpd and continued to increase from year to year.
"It's very unfortunate, including one of the government's failure because for nearly 10 years in power was not built a new oil refinery, when everyone knows, if fuel consumption continues to rise," he added.
However, met after the meeting, he admitted to reporters, Indonesia late if you start to build an oil refinery next year, should this year. Kurtubi said the government has been importing more fun than building a refinery, because the upstream sector is considered more profitable.
Upstream sector in question is oil exploration, which has a large margin. "The price of oil is high, production costs are relatively low," he said.
According to him, the government is not a consideration other benefits from the construction of an oil refinery. First, with refineries, oil import dependence will be reduced, and will strengthen national energy security. Second, create jobs.
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