JAKARTA (March 11) – Indonesia is set to build multiple oil refineries across several of its islands, including Kalimantan and Sulawesi, with a combined capacity of one million barrels per day (bpd). This is a significant increase from the original plan for a single refinery with a capacity of 500,000 bpd, according to the country’s energy minister.
Last week, the government announced its ambition to fast-track 21 natural resource processing projects, valued at US$40 billion (RM176.65 billion), which include several coal gasification projects, oil storage infrastructure, and the expansion of oil refining capabilities.
In a statement after meeting with President Prabowo Subianto, Energy Minister Bahlil Lahadalia confirmed that the refinery capacity would be doubled to one million bpd. He noted that Indonesia currently imports around one million bpd of crude oil and fuel to satisfy its domestic demand.
In addition to the new refineries, the country plans to expand oil storage capacity, adding facilities capable of holding one million barrels. This move aims to strengthen Indonesia’s energy security.
In recent years, Indonesia has taken steps to boost the onshore processing of its natural resources, reducing its reliance on imports.