Indonesia Doubles Capacity of New Refinery Projects to 1 Million Bpd | OilPrice.com
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Breaking News:
Indonesia is doubling to 1 million barrels per day (bpd) the planned capacity of the new refineries it will build in an effort to boost its energy security and downstream industry.
The largest economy in Southeast Asia plans to build several refineries, including on the islands of Kalimantan and Sulawesi, with a total capacity of 1 million bpd, up from 500,000 bpd previously planned, Indonesia’s Energy Minister Bahlil Lahadalia said this week after a meeting with President Prabowo Subianto.
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To cover its domestic demand, Indonesia currently imports around 1 million bpd of crude oil and fuel, the minister said, as carried by Reuters.
Last week, Lahadalia said that Indonesia would build a $12.5 billion refinery with a capacity of more than 500,000 bpd, as it aims to reduce imports and bolster its energy security.
The government announced plans for the 531,500-barrel-per-day facility, which would be one of the largest in the region.
Indonesia currently produces around 600,000 bpd of crude, after output has plunged by nearly 60% since 2000. At its peak in the 1990s, Indonesia was producing as much as 1.6 million bpd.
Amid falling domestic production and rising demand, Indonesia has had to import more crude oil and fuel to meet its consumption needs.
The plan to boost refinery capacity by 1 million bpd reflects President Prabowo Subianto’s aggressive push for energy self-sufficiency—a priority for a country that exports crude but now finds itself importing increasing volumes to meet demand.
As soon as taking office in October 2024, the president said that Indonesia plans to cut red tape to encourage oil and gas exploration as it looks to revive its domestic oil and gas industry and boost energy security.
“We must have energy self-sufficiency and we are capable to be self-sufficient,” President Subianto said in his inauguration speech.
By Tsvetana Paraskova for Oilprice.com
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