Jakarta – The national energy security program is increasingly attracting trillions of rupiah in investment, as the government is committed to strengthening the strategic upstream oil and gas sector. Through downstreaming and global partnerships, the government is affirming its commitment to maintaining energy supplies while reducing dependence on imports.
Recently, Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia held a meeting with the board of directors of PT Pertamina (Persero) and the Indian private conglomerate, Essar Group, to discuss plans to invest in an oil refinery in Indonesia.
Bahlil explained that the meeting focused on discussing plans to develop oil refinery infrastructure in Indonesia by strengthening domestic oil processing capacity. Furthermore, Bahlil emphasized that this initiative must be implemented simultaneously with increasing the value of downstream mining industries.
“This investment plan is expected to align with government policy and contribute to strengthening national energy security,” Bahlil said.
Bahlil had previously stated that Pertamina would partner with the private sector to develop the Refinery Development Master Plan (RDMP) project at the Dumai Refinery in Riau. He believed that this policy would ensure energy security for both Pertamina and the country, thus benefiting both parties.
Meanwhile, Pertamina Deputy President Director Oki Muraza indicated that Russian oil and gas giant PJSC Rosneft Oil Company would be joined by additional partners in the Grass Root Refinery (GRR) project, also known as the Tuban Refinery. Oki explained that the capital expenditure (capex) required to build the Tuban Refinery is indeed quite substantial.
Rosneft’s final investment decision (FID) process is currently underway and is expected to be completed soon. He confirmed that Pertamina will generally accelerate the expansion of its refinery capacity, including by attracting new partners, including the Tuban GRR project.
“That’s why we’re establishing partnerships. Currently, the status is FID. Hopefully, we can finalize it soon and move on to the next stage. Regarding our partners in this refinery, we’re coordinating very closely with the government, Danantara, and the Ministry of Energy and Mineral Resources,” Oki explained.
Going forward, policy consistency and accelerated project implementation will be key to maintaining investor confidence in the national energy sector. Investment in refineries and upstream oil and gas is expected to strengthen supply while reducing the energy import deficit.
Through strategic collaboration and strengthening downstream industries, energy security will not only support domestic needs but also drive sustainable economic growth. This step affirms energy as a crucial foundation for national independence and competitiveness.
