Indonesia, Iran agree to build oil refinery in Banten

Visiting Indonesia`s President Susilo Bambang Yudhoyono made the statement in a press conference held at the Saad Abas Palace here on Tuesday night.

The cooperation, he said, would involve Indonesia`s state oil company PT Pertamina, the Oil Refining Industries Developing Company (ORIDC) of Iran and Petrofield Refining Company Ltd. (Malaysia).

"The composition of shares will be 40 percent for Pertamina, 40 percent for Iran and 20 percent for Malaysia," he added.

He expressed hope that with the presence of the expected new oil refinery to be worth US$6 billion, the fuel oil supplies at home would increase.

Besides, he said, the refining process at home would drop the price.

He said the two contries would indeed focus the bilateral cooperation on the energy sector, mainly on petroleum and gas.

He further said Pertamina would take part in a bid for oil exploration in Iran.

Besides the agreement, he added, the two countries also agreed on the cooperation between state fertilizer company PT Pusri and its partner in Iran by setting up a petrochemical factory which was expected to maintain fertilizer supplies.

The head of state also ...