Indonesia's national oil company Pertamina plans to invest US$9bn in the construction of a 300,000 bbl/d (15 Mt/year) oil refinery in Bontang, in East Kalimantan (Indonesia). It will produce high-grade oil products, including RON-92 gasoline and Euro IV-V type diesel. The government has already prepared land for the project, to be built under a public-private partnership scheme, and plans to offer financial incentives such as tax exemptions.
Pertamina already operates eight refineries in Indonesia with a cumulated capacity of nearly 1.2 mb/d. In December 2014, the group signed agreements with Saudi Aramco, Sinopec and JX Nippon Oil to upgrade and double the capacities of five refineries: 170,000 bbl/d Dumai in Riau, 348,000 bbl/d Cilacap in Central Java, 125,000 bbl/d Balongan in West Java, 118,000 bbl/d Plaju (Musi) in South Sumatra and 260,000 bbl/d Balikpapan in East Kalimantan. Indonesia plans to increase its refining capacity to 1.68 mb/d. Pertamina aims to triple gasoline production from 190,000 bbl/d in 2012 to 630,000 bbl/d by 2025 and to double diesel output from 320,000 bbl/d in 2012 to 770,000 bbl/d by 2025.