Jakarta – The Indonesian government continues to strengthen national energy security by planning to build an oil refinery with a capacity of 1 million barrels per day (bpd), up from the initial plan of only 500 thousand bpd. This step is expected to reduce dependence on imports, increase energy efficiency, and support national economic growth.
This development plan was conveyed by the Minister of Energy and Mineral Resources, Bahlil Lahadalia, after attending a Limited Meeting (Ratas) with President Prabowo Subianto at the State Palace.
“We discussed the construction of a refinery which was initially planned for 500 thousand barrels per day. Because we still import around 1 million barrels per day, it was decided to build a refinery with a capacity of 1 million barrels per day in several locations,” said Bahlil Lahadalia.
The government has determined strategic locations for the construction of this refinery, including Java, Sulawesi, Maluku, and Papua, to ensure a more even distribution of energy and increase the competitiveness of the domestic industry.
In addition, in order to strengthen the national energy infrastructure, the government will also build an oil storage facility with a capacity of 1 million barrels per day, as part of a long-term energy security strategy.
“We will also build storage with a capacity of 1 million barrels per day to strengthen national energy reserves,” said Bahlil Lahadalia.
In the Limited Meeting, the government also discussed the development of Dimethyl Ether (DME) as an alternative to LPG, as well as accelerating downstreaming in the fisheries, plantations, and forestry sectors to increase the added value of the domestic industry.
The mineral sector is one of the main priorities in this downstreaming project. The government is encouraging the processing of bauxite, nickel, and tin, as well as developing new technologies such as solar panels and the use of quartz sand to support the energy transition.
Bahlil Lahadalia emphasized that all of these projects will be carried out with the principle of sustainability, both from an economic and environmental perspective.
“We ensure that these projects have a positive impact on the environment and support the zero emission target by 2060,” he said.
This step is in line with President Prabowo Subianto’s vision of targeting energy self-sufficiency as the main pillar of Asta Cita. With the construction of large-capacity refineries and the integration of renewable energy, Indonesia is expected to reduce imports, improve the trade balance, and strengthen national energy security amidst global geopolitical challenges.
