Tuban Refinery Complex Enters Reclamation Stage

Summary

The oil and petrochemical refinery complex project in Tuban, East Java, will finally continue after being hampered by convoluted land affairs. Its construction has been delayed for a long time since PT Pertamina and Rosneft PJSC became partners in 2017. However, the head of the Investment Coordinating Board (BKPM), Bahlil Lahadalia, said that construction would begin again in December. "We will start the reclamation phase in December based on the data from the JO [joint operation] between Rosneft and Pertamina," he said in a virtual discussion on Thursday (11/26).

Bahlil revealed that the Rp 708 trillion worth of oil and petrochemical refinery complex in Tuban faced a very complicated problem acquiring 841 hectares of land. "Now only 30 hectares remain unresolved. It has been measured, but the remaining landowners still refuse any payment," he continued. He also added that Pertamina and Rosneft had only executed 67 percent of the project due to land problems and spent about Rp 474.9 trillion.

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