Because Buru will be producing 'light-end' condensate which is...

Because Buru will be producing 'light-end' condensate which is used to blend with other heavier crudes from other parts of the world, a regional refinery would require heavy crude imports to formulate widely used fuels. For this reason alone, SE Asia is our nearest tier-1 refinery hub as it receives crude grades globally.
The other reason Australia can't compete is our high wages derived from knife-point union threats in industries like these ensures companies like BP, Ford and Holden eventually pack up for the ultimate payback. Unless you haemorrhage billions of dollars of taxpayers money propping up a loss-making State-owned disaster similar to Venezuela, its not going to happen.