Cancelation of Saudi Aramco Investment in Cooperation to Develop the Oil Refinery in Cilacap

Abstract

. Indonesia through PT Pertamina and Saudi Aramco in 2016 officially started the negotiation process to form a joint venture for developing the Cilacap Refinery in Central Java which is Pertamina's Refinery Development Master Plan (RDMP). However, results from the negotiation efforts are not as expected investment from Aramco was canceled. Author's initial identification apart from economic factors, there are non- economic factors that affect the process. Therefore, this paper aims to analyze the cancellation of Saudi Aramco's investment in a joint venture with Pertamina for developing the oil refinery in Cilacap using the Political Bargaining Models. Moreover, this analysis hoped to reveal non-economic factors that affected the cancellation of the cooperation.