Indonesia Needs Iran's Investment in Oil Sector

 "First of all Indonesia needs to attract more investment by the Islamic Republic to develop its oil refineries," Vice Chairman of Indonesia's Energy and Mineral Resources Commission said on Wednesday.

He reiterated that Cilacap Refinery in Central Java allocated 10 percent of its capacity, i.e. 30,000 barrels, to Iranian oil.

An Iranian oil cargo, amounting one million barrels, reached Indonesia's Java in mid-February to be tested in Cilacap Refinery.

On the other hand, based on an announcement by the state-owned Pertamina Company, it is planning to increase oil purchase from Iran and to do so, they are evaluating Iranian oil.

Indonesia's state-owned energy company Pertamina announced that it is planning to increase its crude oil exports from Iran.

"Pertamina intends to increase its oil imports by 15.96 percent in 2017 and for the same reason the company is studying Iran as an option," Indonesia's media quoted an unnamed senior manager of Pertamina as saying.

He underlined that the Indonesia is planning to increase its annual oil import to 155.399 million barrels in 2017.

In relevant remarks in March, Iranian Foreign Minister Mohammad Javad Zarif and Indonesian Minister for Coordinating Economic Affairs Darmin Nasution in a meeting in Tehran underlined the need for broadening of bilateral relations in all areas, specially in oil and gas fields.

Zarif and Nasution explored avenues for boosting mutual cooperation in energy fields.

During the meeting, the Indonesian minister presented a report on the latest cooperation between Tehran and Jakarta in the energy and mining field.

Also in March, Nasution declared his country's interest in purchase of crude oil from Iran through long-term supply agreements.

"Indonesia has purchased one million barrels of oil from Iran for a related compatibility check with its refineries and once the check is successful, Jakarta would proceed with sealing a long-term supply deal with Tehran in the near future," Nasution said.

Nasution, who was heading a major trade delegation to Tehran, said that Indonesia was also interested in purchasing liquefied petroleum gas (LPG) from Iran.