The $4 billion project will be jointly undertaken by Indonesia's PT Pembangunan Perumahan Tbk and Rekayasa Industri, Ignatius Tallulembang, director of large projects at the state-owned energy company, said at a media briefing.

At the same event, Pertamina signed a framework agreement with Oman's Overseas Oil and Gas LLC (OOG) to develop a new $10 billion refinery and petrochemical complex in Bontang, also on the island of Borneo.

Once completed, OOG is expected to supply 300,000 barrels per day of crude oil to the refinery, Tallulembang said.

(Reporting by Wilda Asmarini; Writing by Fergus Jensen; Editing by Kenneth Maxwell)