BUSINESS : JX Nippon Oil & Energy Corporation planned to invest in Indonesia oil refineries

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▼ JX Nippon Oil & Energy Corporation planned to invest in Indonesia oil refineries

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Photo : gis-media.com

The largest oil refiner in Japan, JX Nippon Oil & Energy Corp is now attempting to build a number of refineries in Indonesia. Not only that, Japan also intends to build a gas station in Indonesia and Vietnam.

According to Legal Business Online site, Friday (09/22/2014), the plan due to lower fuel consumption in Japan. The business cooperation will be the first major investment outside Japan initiated by JX.

Largest oil refinery companies in Japan that assesses Indonesia and Vietnam as the two countries are the most promising investment locations due to its rapid economic growth projections.

"Openness to foreign investment is also the reason we targeting Indonesia and Vietnam," said President of JX, Tsutomu Sugimori.

Japanese oil demand has slumped as much as a fifth recorded from a total of ten years ago. In the next five years, Japan's oil demand is predicted to fall by eight percent.

Indonesia and Vietnam are two countries that recorded an increase in demand for oil by one to two percent annually. Both ASEAN countries are now also working to increase the capacity of its oil refineries to reduce the import of products are fairly expensive.

So far, one of the Japanese oil refinery company also recorded has helped Vietnam build a second refinery.

However, the JX is also not looking to do business in Indonesia as an easy plan. Because, Indonesia has never approved a number of agreements with foreign partners who submit project proposals oil refinery in the last twenty years.

"Indonesia has a lot of requirements such as the need to update refineries, increasing capacity and avoid aging penyulinganm oil processing facility., But we are seeking to find ways to go to Indonesia," said Sugimori.

He explained that they are studying whether the business conditions in Indonesia can build refineries and fuel sales network in the country. JX now is expanding so far in Asia but not for China and South jorea.

According to Wood Mackenzie, Indonesia may be the world's biggest importer of diesel in 2018 was the reason why the Indonesian petroleum industry should be more aggressively attract many investors to build new refineries in the country.

(source : liputan6.com)

August 25, 2014
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