Indonesia to build new oil refineries, doubling processing capacity to 1 million bpd

Indonesia has announced plans to construct several oil refineries across its islands, including Kalimantan and Sulawesi, with a combined capacity of 1 million barrels per day (bpd), doubling the originally planned capacity of 500,000 bpd.

The country's energy minister confirmed the upgrade, highlighting a broader strategy to enhance its energy security, Caliber.Az reports via foreign media.

Minister Bahlil Lahadalia revealed the new refinery capacity after a meeting with President Prabowo Subianto on March 10, stating, “We are ramping up our efforts to boost refining capacity to 1 million bpd, which will significantly help us meet domestic demand and reduce reliance on imports.”

Currently, Indonesia imports around 1 million bpd of crude oil and fuel to meet its domestic needs, which is expected to remain a challenge until the new refineries are operational.

The government is also accelerating 21 major natural resource projects worth $40 billion, aimed at boosting domestic processing capabilities. These include several coal gasification projects and the construction of new oil storage facilities. "In addition to the refineries, we are planning to build oil storage with a capacity of 1 million barrels," Bahlil added, stressing the importance of ensuring energy security for the nation.

Indonesia has been increasingly focused on onshore processing of its natural resources in recent years as part of its broader economic strategy.

By Aghakazim Guliyev