Indonesia hopes to finish this year a preliminary study on building a $2.5 billion refinery in West Java, a source close to lead partner PT Elnusa said.

After the study, PT Elnusa will proceed to secure the necessary investments, the crude feedstock supply and customers for the refinery’s output, 70 per cent of which will be exported.
PT Elnusa, together with its 30 per cent joint-venture partner National Iranian Oil Co, signed a memorandum of understanding in May to build the 300,000 barrel-per-day (bpd) oil refinery near Merak in West Java.
“As for the crude feedstock supply, it won’t be a problem. We are expected to sign a crude supply agreement with Iran soon,” the source said.