JAKARTA, Nov. 14 (Xinhua) The Indonesian government would soon build oil refineries to meet with rising energy demand and slash the country's huge oil import that has widened current account shortfall, a minister said here on Friday.

 

Energy and Mines Minister Sudirman Said disclosed that the government would invite investors in constructing the processing units, and that many investors were interested to take part in the projects.

 

"Actually, the investors are interested in building new refineries in Indonesia. I am certain that new refineries would be built," Sudirman revealed at the energy and mines ministry.

 

The minister said that further preparation on the plan would be undertaken, including the location and financing.

 

For now, Indonesia has 6 oil refineries across the country with total refining capacity of about 1 million bpd that complies about two-third of the country's demand.

 

That forces Indonesia to import some 500,000 bpd of fuel products to meet the gap.

 

The shipment of the oil from overseas has significantly contributed to Indonesia's trade performance, widening the current account gap. Hence it erodes rupiah value again the U.S. dollar.

 

Indonesia, a net-oil importer country and provides a huge oil subsidy, has scrambled to boost oil outputs and dependency on the fossil fuel as aging wells and lack of fresh investment have resulted in the wells pumping less oil.