Jakarta (ANTARA News) - Energy and Mineral Resources Minister Ignasius Jonan said that the private companies could could built their own oil refineries but they should also build distribution networks.
"The private sector could build own oil refinery but they should import their own crude oil to feed their refineries and build own distribution systems including fuel filling stations (SPBU)," Jonan said at a "Development Energy Expo 2017 here on Tuesday.
Under a ministerial regulation, state-owned energy company PT Pertamina no longer holds the monopoly in development and business in oil refinery in the country.
In addition, Private companies operating an oil refinery is not required to sell its oil products to Pertamina, Jonan said.
"The private sector has complained about Pertaminas off-take. Now there is no more off-take for Pertamina," the minister said.
The policy is strengthen the countrys energy resilience, to better guarantee fuel supply in the country and to reduce dependence on imports for oil fuels, he said.
In addition to create open competition to strengthen Pertaminas competitiveness, he added.(*)