The Iranian government is planning to build a multimillion-dollar oil refinery in Bojonegara, Serang, Banten, announced Iran’s Ambassador to Indonesia Behrooz Kamalvandi, reported Jakarta Post.
President Ahmadinejad in a meeting with Indonesian president in Jakarta several months ago signed a number of documents to expand Indonesian-Iranian cooperation, including the development of an oil refinery plant in Banten, the ambassador said.
In his press statement sent to Banten provincial administration, Kamalvandi said that the refinery would likely be built in Bojonegara subdistrict, because it was close to the coast and this would make it easy to market the product.
In that location, the regional government of Banten is also planning to construct international standard facilities. "Refinery process needs a lot of water. Therefore, Bojonegara is selected to be the main site of the plant. We have carried out pre-feasibility studies on the possibilities of Bojonegara to be selected," the ambassador said.
He said that the feasibility studies were conducted very carefully and prudently since a site for such a plant needed extensive land.
The project will benefit Banten as it would absorb thousands of workers, he said.
Once operational, the plant would refine some 20,000 barrels of oil per day. "This would meet a quarter of Indonesia’s need for oil," he added.