Dwi Soetjipto, the chief executive officer of the state-owned Pertamina oil and gas corporation, was quoted by media as saying that that the projected imports from Iran would be provided to the Cilacap refinery in Indonesia’s Central Java province.

“We will try to bring in .. for the Cilacap refinery about 1 million barrels for experiment. When we know the result, the yield, then we could negotiate for the long term,” Soetjipto was quoted by Reuters as saying.

The announcement comes on the heels of a visit to Iran by Indonesia’s President Joko Widodo last week.

During President Widodo’s stay in Tehran, Iran and Indonesia signed over a dozen basic agreements to promote cooperation in a variety of areas such as banking, food and agriculture, oil and gas as well as general trade.

A key agreement was one for selling more than 500,000 metric tons of liquefied petroleum gas (LPG) by Iran to Indonesia in 2017.

Iran also expressed its commitment to invest in Indonesia by building an oil refinery in East Java and a 5,000-megawatt mobile power plant in an unspecified location, the Jakarta Post reported.

Both countries also explored the possibility of teaming up to operate Iran’s Ab-Teymour and Mansouri in the country’s southwestern oil-rich province of Khouzestan.

The current annual level of Iran’s exports to Indonesia stands at around $74 million while the imports stand at about $83 million, Iran’s IRNA news agency reported.

Both countries have already announced serious plans to boost the level of their trade to as high as $2 billion.

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“It is highly likely we will import again from the National Iranian Oil Company,” Pertamina spokeswoman Wianda Pusponegoro told reporters, according to Reuters.

Pertamina plans to import up to 12 cargoes, each of which contains 44,000 tonnes of gas, in 2017, she added.

Pusponegoro further said the deal could be signed this week during Indonesian President Joko Widodo’s ongoing visit to Iran.

Widodo, who is in Iranian capital at the head of a delegation, signed four cooperation agreements with Iran during a meeting with his counterpart President Hassan Rouhani on Wednesday.

Moreover, Pusponegoro said the company is also considering buying stakes in two oil and gas blocks in Iran.

“We hope they can agree on Pertamina’s proposal,” she said, noting that Iran was still studying the matter and that Pertamina aims to complete a deal at the beginning of 2017.

“Our target is for at least 30,000 barrels of oil equivalent per day.”

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President Rouhani: Strengthening Tehran, Jakarta ties to benefit both nations

TEHRAN, Dec. 14 (MNA) – President Rouhani has said the strengthening of relations between Iran and Indonesia will benefit both nations and the region, adding, Tehran and Jakarta are determined to expand their cooperation.

Rouhani made the remarks on Wednesday in Tehran at a joint press conference with his Indonesian counterpar, Joko Widodo, after holding a meeting to sign four MoUs.

Rouhani stressed Iran, as an important country in West Asia, attaches great importance to the expansion of ties with Indonesia as an important Muslim country in East Asia.

“Bilateral relations between Jakarta and Tehran will benefit both nations, and help establish security and stability in the region and the Muslim World,” he added.

Pointing to the progress in bilateral ties after his recent trip to Indonesia, Rouhani stressed the need for acceleration of cooperation trends between the two countries due to wide range of potentials.

Rouhani further said Iran will provide Indonesia with crude oil, liquid gas and petrochemicals among other products, adding that Tehran and Jakarta have agreed that mutual trade take place directly, forgoing any third party.

Elsewhere in his speech, President Rouhani addressed the need to strengthen cooperation between Tehran-Jakarta on international issues, and said the two countries are working closely together in NAM and OIC; today, we agreed to bolster cooperation on issues facing the Muslim world, including the crises in Yemen, Syria and Myanmar, whose solution can deepen regional security and stability.

The Indonesian president, in turn, described his visit to Tehran as a new chapter in Tehran-Jakarta relations, saying his talks earlier in the day with President Rouhani focused on the promotion of bilateral ties in different areas, including energy and economy.

Pointing to buying 500 thousand metric tons of liquefied gas from the Islamic Republic of Iran, he said the two countries agreed to invest on the establishment of refineries in East Java.

Indonesian President heading a high ranking politico-economic delegation arrived in Tehran on December 13 to confer with Iranian senior officials.

Joko Widodo met with Ayatollah Khamenei

Joko Widodo, President of Indonesia and his entourage met with Ayatollah Khamenei, the Leader of the Islamic Revolution, today evening, December 14.

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Pertamina Managing Director Dwi Soetjipto welcomed the 44,000 metric tons of LPG transported from Asaluyeh Port in Iran by its VLGC Pertamina Gas 2 vessel, at Kalbut Port in Situbondo, East Java, Jakarta Post reported.

He added that the LPG shipment from National Iranian Oil Company (NIOC) would open up other business development opportunities between Pertamina and NIOC, in both the upstream and downstream sectors.

“It marks a new chapter of cooperation between Pertamina and the NIOC and makes trade cooperation between Indonesia and Iran more significant,” Dwi said in a statement on Thursday.

Earlier, the NIOC agreed to supply Pertamina with a total volume of 600,000 tons of LPG for 2016 and 2017.

Following the arrival of the first cargo, the NIOC will immediately send the next cargo, which is expected to arrive on Nov. 20.

In addition to the LPG purchase, the two state-run companies signed an agreement to conduct a preliminary study of two giant oilfields in Iran which have an oil reserve of more than five billion barrels.

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