Indonesia Sets Sights on Mega Refinery to Bolster Energy Independence

Jakarta, VIVA – Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia has revealed the government's plan to build an oil refinery with a capacity of 1 million barrels per day. This initiative is part of the broader effort to accelerate downstream industrialization.

"We will build a refinery with a capacity of around 1 million barrels, and it will be established in several locations, including Kalimantan, Java, Sulawesi, and Maluku-Papua, to ensure equitable development," minister Lahadalia stated on Tuesday (March 11).

In addition, Minister Lahadalia announced that the government will also construct storage facilities with the same 1 million barrels per day capacity.

In the energy sector, the government is pushing for the development of dimethyl ether (DME) as an alternative to LPG, while also expanding downstream industrialization in the fisheries, plantation, and forestry sectors.

"As for mineral resources, beyond bauxite, we will also focus on issues related to nickel and tin. Furthermore, we plan to develop solar panels and refine quartz sand, classifying it as part of the country's critical minerals, as this presents a comparative advantage for our nation," he remarked.

However, Minister Lahadalia has yet to confirm the estimated cost of constructing the massive refinery, as it depends on presentations from oil and gas companies that will participate in the project.

"The exact value will be determined after the presentations on Monday. We will review technologies from several countries, including the United States. Only then can we provide a definitive figure," the minister explained.

At the same event, Minister of Investment and Downstream Industrialization Rosan Roeslani reaffirmed the government's commitment to encouraging investment in well-prepared downstream projects.

The government remains open to both foreign investors and domestic businesses interested in investing in these ready-to-execute projects.

"In essence, we will conduct an independent evaluation, considering all aspects, including return on investment, profitability, and most importantly, the potential reduction of imports, particularly in the energy sector. Lastly, we will assess the project's impact on job creation," Minister Roeslani explained.

Beyond economic gains, this downstream industrialization initiative is also aligned with the government's target of achieving net zero emissions by 2060.

Rosan Tepis Kabar Ray Dalio Batal Gabung Danantara

Rosan Roeslani buka suara soal kabar Pendiri Bridgewater Associates, Ray Dalio batal untuk bergabung ke dalam jajaran Dewan Penasihat Danantara.

VIVA.co.id

28 Mei 2025