REPUBLIKA.CO.ID, JAKARTA -- The Oil and Gas Directorate General is developing business potentials in the downstream sector of the oil and gas industry.

So far, the directorate general of the Energy and Mineral Resources Ministry has been focused more on development of the upstream sector of the industry.

"The move downstream is something new," Oil and Gas Director General IGN Wiratmaja Puja said here on Thursday.

Currently the oil and gas directorate general is looking into possibility of bilateral cooperation with the Saudi government in a number of oil and gas projects.

Cooperation is being discussed in development of oil refinery, supply of crude oil ,development of petrochemical factory and construction, he said.

The projects, however, are all still in the phase of discussions, he said, adding no decision has been made.

Earlier state-owned oil and gas company PT Pertamina already sought cooperation with Saudi counterpart Aramco. Aramco already gave commitment of investing US$10 billion in Indonesia.

Corporate Secretary of PT Pertamina Wisnuntoro said Pertamina was studying a number of points proposed by Aramco to seek a solution beneficial to both sides.

Winuntoro said Aramco wanted tax holiday for 20 years and they also want to invest in the downstream sector.

He said the cooperation with Aramco is still in the phase of negotiation which is expected to come to an agreement immediately.

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