Tan Sri Marican confirmed that "the downstream sector is our long term target in Indonesia, but we know that it is not going to be easy" and that the figure he quoted would help "support our downstream business." Aiding the process is the company's newly established local unit PT Petronas Niaga Indonesia, which will also act as the distributor for all Petronas downstream products.

Of course, full involvement in the previously protect Indonesian downstream market cannot begin until November 2005 when the country's Law No. 22/2001, which liberalises Indonesia's oil and gas sector that had been the purview of Pertamina, comes into effect.

The Tan Sri stated that - in order to support this expansion - Petronas was negotiating with Pertamina to set up petrol stations throughout Indonesia and that such a tactic had already helped Petronas do business in South Africa and the same procedure would be used in Indonesia.

"We have expressed our interest in the fuel station business and we have agreed to use Pertamina's products," said Tan Sri Marican. He also added that this new joint venture would focus its business in Sumatra and Java first before expanding to the other islands.

Tan Sri Marican has also confirmed that his company had invested up to US$400 million in Indonesia's upstream sector to support this future expansion and that its petroleum products would be refined in Sarawak before being transported to Pontianak in West Kalimantan.