The Indonesian Government has announced plans to build a new oil refinery with a production capacity of 531,500 bbl/d. The refinery, which will require investments of up to USD 12.5bn, will be able to process domestic and imported crude oil and is part of the country’s push to develop its downstream sectors to ensure energy security. The Indonesian Government has not yet provided details on the timeline or location of the planned project.
Indonesia’s refining capacity stood at 1,151 kb/d at the end of 2023. The country has not built a new refinery since 1994, leaving it reliant on imports to meet its demand for oil products, although several projects have been touted. In 2023, The Indonesian company Pertamina reached financial close for its Balikpapan oil refinery expansion project, which will see its capacity increase from 260 kb/d to 360 kb/d. In addition, in 2022, Pertamina and the Russian group Rosneft partnered to develop a 300 kb/d refinery in Tuban, East Java.
