REPUBLIKA.CO.ID, JAKARTA -- Participant of Democratic Party Convention who is also Minister of State Owned Enterprises, Dahlan Iskan said that Indonesia was occupied by oil imports to meet domestic demand. It becomes a continuous problem in this country.

"We continue to import oil and do not know when it will end," Iskan said recently.

He considered that the construction of fuel refinery can reduce the cost of imports. It needs about 80 trillion IDR to build a refinery with capacity of 300 thousand barrels per day. The high cost causes investors too hard to build a refinery.

"Therefore, we need to give incentives to build an oil refinery," Iskan said.

Government can provide incentives to investors who are interested in building refinery. He assumed, two oil refineries can be built with incentives of 14 trillion IDR. In the last four years, Indonesia must spend 140 trillion IDR to import fuel.

Indonesia must develop new refinery although the cost is quite high. It is difficult to push oil imports without it. The difference between incentives (14 trillion IDR) compared to the loss (140 trillion IDR) is too far. Iskan proposed better to spend 14 trillion IDR compared to import oil more and more.

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