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1 Million Barrel Oil Refinery a Major Investment for Energy Sovereignty

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By: Gerry Alfian )*
Indonesia is moving forward with a big ideal in strengthening energy sovereignty, one of which is through the 1 million barrel oil refinery project that is currently being promoted. This oil refinery project not only has strategic value in maintaining domestic energy supplies, but also becomes an important milestone for the progress of the national energy sector. This large investment is Indonesia’s effort to be independent in meeting domestic energy needs and reducing dependence on imported fuel oil (BBM).
The government through the Ministry of Energy and Mineral Resources (ESDM) is preparing to build a jumbo-scale oil refinery with a production capacity of 500 thousand barrels per day in the Tanjung Api-Api area, South Sumatra. This project is expected to be an important milestone in efforts to reduce dependence on fuel imports and strengthen national energy security. As a country with a large population and a rapidly growing economy, the need for energy, especially fuel oil, continues to increase.
Minister of ESDM, Bahlil Lahadalia said that Indonesia has so far imported most of its BBM needs to meet domestic demand. This dependence makes Indonesia vulnerable to fluctuations in global energy prices which can have an impact on the national economy. Through the construction of a large-scale oil refinery, dependence on oil and gas can be reduced. With a production capacity of 500 thousand barrels per day, this refinery is projected to increase domestic fuel supplies and reduce the amount of imports that have burdened the state budget.
In addition, this refinery is also expected to produce various types of processed oil products, including gasoline, diesel, and aviation fuel, which are greatly needed by the transportation and industrial sectors throughout Indonesia. In addition to reducing dependence on imports, this oil refinery is also part of the government’s efforts to strengthen national energy security.
As a country with abundant natural resource reserves, Indonesia is now focusing on managing and utilizing these resources more optimally. Expert advisor to the Research and Development Agency of the Golkar Party DPP, Prof. Dr. Henry Indraguna said that by having a large-capacity oil refinery, Indonesia can manage domestic oil production independently, which of course will provide stability in energy supply and minimize the impact of uncertainty in global energy supply.
This refinery will also bring various economic benefits, such as creating new jobs for the surrounding community. During the construction phase, this project is expected to involve thousands of workers, from experts to construction workers. Once operational, this refinery will open up job opportunities in various sectors, such as oil processing, facility maintenance, and product distribution.
Moreover, this oil refinery also has the potential to attract investors, both local and foreign, who are interested in investing in Indonesia’s energy industry. The existence of this refinery can open up opportunities for the development of downstream industries related to energy, such as the petrochemical industry, which in turn will drive national economic growth.
Minister of Investment and Downstream / Head of the Investment Coordinating Board (BKPM), Rosan Roeslani, said that the construction of the oil refinery in Tanjung Api-Api will also be equipped with sophisticated, environmentally friendly technology. The use of modern technology in the oil processing process will allow for higher efficiency, as well as reduce negative impacts on the environment. This facility is designed to meet strict environmental standards, in order to maintain the sustainability of the ecosystem and ensure that refinery operations do not cause environmental damage.
In addition, the government is also committed to paying attention to the principles of sustainability in every stage of the construction and operation of this refinery. In the long term, this project is expected to be part of a strategy to develop renewable energy, as well as reduce dependence on fossil fuels in line with the global energy transition.
The construction of this jumbo-scale oil refinery is not without challenges. One of the biggest challenges is the need for huge investment to build refinery infrastructure that meets global standards. In addition, Indonesia must also face technical challenges in building a facility of this size, which includes managing human resources, technology, and other supporting infrastructure.
However, these challenges also open up great opportunities for Indonesia to strengthen its technological capacity in the energy sector. With collaboration between the government, energy companies, and other related parties, this refinery project is expected to be completed well and have a major positive impact on the national economy.
In this case In conclusion, the construction of an oil refinery with a capacity of 1 million barrels is a major step for Indonesia in realizing energy sovereignty. With this refinery, Indonesia will not only reduce its dependence on fuel imports, but will also strengthen domestic energy resilience that can support economic stability. In addition, this project opens up opportunities for the development of a more efficient and sustainable energy industry, as well as creating jobs that are much needed by the community.
Through this major investment, the Prabowo era government is building a strong foundation for a more independent, sustainable, and resilient energy future to global energy market turmoil. This oil refinery project is not only about energy production, but also about creating a more resilient economy and reducing dependence on foreign energy for the welfare of the nation. )* The author is a student living in Bekasi

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