Indonesian officials said on Saturday that Iran will construct a refinery in the country.

Rudy Rajab, the president of Iran-Indonesia Trade Commission, has told a meeting of traders of the two countries in Tehran that Iran will provide 30% of the funds required for the refinery project.

The rest will be provided by Indonesia, Rajab has been quoted as saying by Iran’s media.

The refinery project, he added, will help increase the volume of trade between the two greats by a significant volume that currently stands at $400 million per year.

Rajab further emphasized that the removal of sanctions against Iran will help further boost trade ties between Iran and Indonesia.

The plan for Iran to construct a refinery in Indonesia had been in the offing for a while. The two countries had sealed a deal over the project in 2005 and Indonesian officials said a year later preparations were being made to take it off the ground. However, no specific step was taken over the project until today.

Based on an original plan, the projected refinery was to have a refinery capacity of 300,000 b/d. It was planned to be constructed in either West or East Java province with an investment of $4 billion.

Source: Press TV