The government is finalizing a package designed to encourage investment in oil and gas refinery projects to take effect in June, an official Wednesday said.

"We are thinking of providing incentives in the form of tax holidays," director general of oil and gas at the energy and mineral resources ministry Luluk Sumiarso said without elaborating.

He said he hoped the facility would ease Indonesia's woes over securing fuel supply and that the country could reduce oil imports, benefiting the state budget. Currently, Indonesia imports approximately one third of its oil demand.

6 refineries are now in operation in the country, with a total capacity of 868,000 barrels per day.

The ministry has so far approved the development of seven more refinery projects located across the country, although none have yet come on-stream.