RIYADH, 18 August 2006 — In a major move to boost cooperation in energy sector, Saudi Arabia and Indonesia have started working on a proposal to set up a joint refinery project in Indonesia, said Salim Segaf Al-Jufrie, Indonesian ambassador, here yesterday. Al-Jufrie said that “Jakarta was preparing the project proposal for a new Saudi-Indonesian refinery, which would be submitted to Saudi Aramco soon.”
The ambassador was speaking on the occasion of his country’s national day here yesterday. The day was celebrated at the embassy’s premises with great fanfare. The event was attended by a large number of community members, diplomats and guests besides several workers and officials of Indonesian companies. Arif Suyoko, Indonesian embassy’s information official, was also present.
Referring to the proposal of the refinery project, Al-Jufrie said that this important project was discussed by Custodian of the Two Holy Mosques King Abdullah and Indonesian President Susilo Bambang Yudhoyono, when the latter visited the Kingdom last April. He said that “Saudi Aramco was awaiting the project proposal from Indonesian oil company, while the Indonesian side is still preparing the proposal.”He said that he met Abdullah S. Jumaah, Aramco chief, recently in Dammam with an aim to follow up the discussion, which took place between King Abdullah and Yudhoyono.
The only Asian member of the Organization of Petroleum Exporting Countries, Indonesia has been a net importer of crude oil. Pertamina, a wholly state-owned enterprise with 14 subsidiaries including Pertamina Energy Trading Ltd., is working on the project from Indonesian side.
Asked about the Saudi assistance to Indonesia, he said “the total amount of assistance received by the government of Indonesia from Saudi Fund for Development exceeds $233.79 million since 1976.” Most of this assistance was used for highway toll road projects in Jawa, fertilizer extension factory projects, irrigation project, small and middle enterprises, and harbor projects. Since 1987, no project in Indonesia has been funded by the SFD.
The ambassador, however, said that the assistance made available by the Islamic Development Bank was about $288 million mainly for educational projects, trade facilities, hospitals, customs capability, and regional projects in Sumatera. This is the total amount of funds made available by the IDB from 2003 to 2006.