Wed, Oct 13, 2010 - Page 11 News List

CPC still mulling setting up refinery in Indonesia

Staff writer, with CNA

CPC Corp, Taiwan (CPC, 台灣中油) is still mulling a plan to set up a refinery in Indonesia, but expects the Indonesian government to offer better incentives, a company official said yesterday.

“We are still assessing various investment conditions in Indonesia, but we need to negotiate with the Indonesian government over, for example, tariff reductions,” Quentin Yao (姚坤泰), the director of CPC’s department of joint ventures, told reporters.

His remarks came in the wake of a report in the Chinese--language United Daily News on the same day that CPC chairman Chu Shao-hua (朱少華) had confirmed that Indonesia had offered three islands as possible locations for the company to set up an oil refinery.

Chu, however, said the state-owned oil company was likely to choose only one of them and he added that the deal would be off if the terms were deemed unsatisfactory.

Yao said CPC still expected Indonesia to grant preferential measures, including tariff removal and utility bill cuts.

He added that the company would phase out a refinery in Taiwan and could move the old facilities to Indonesia.

Meanwhile, an official from the Council of Agriculture told the Central News Agency on condition of anonymity that the Indonesian government had invited Taiwan to help develop its Morotai Island.

The council will send a team to Morotai, which has coal mines and abundant aquatic resources, to conduct an assessment next week at the earliest, the official said.

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