Pertamina and Kuwait Petroleum joint venture delayed

The joint venture between Indonesia’s PT Pertamina and Kuwait Petroleum has been put on hold, resulting in the delay in the construction of PT Pertamina’s Balongan Baru oil refinery in Indramayu, West Java. Construction of the US$8 billion oil refinery is an expansion of PT Pertamina’s Balongan l refinery and is expected to produce 9.6 million kiloliters of oil fuel in 2017. The delay was caused by questions raised by Kuwait Petroleum regarding the payment for the land where the refinery will be built. Kuwait Petroleum is also asking for tax incentives similar to those given by China and Vietnam, where the company is involved in similar projects. (January 2, 2012)