Indonesia makes a $12.5 billion bet on oil with ambitious refinery project

Indonesia is making a bold move in the oil sector with a massive $12.5 billion refinery project designed to reduce imports, strengthen energy security, and enhance its refining capabilities. The government has unveiled plans to build a refinery with a capacity of 531,500 barrels per day, positioning it as one of the largest in the region. As Indonesia’s economy continues to grow rapidly, reliance on oil imports is no longer sustainable.

Energy Minister Bahlil Lahadalia emphasized the scale of the project, stating, “We will build a refinery that, In shaa Allah, will have a capacity of approximately 500,000 barrels.” This commitment underscores Jakarta’s focus on revitalizing domestic refining capabilities, a critical step towards achieving energy self-sufficiency. President Prabowo Subianto has made this a central goal, as the country shifts from being a crude exporter to increasingly relying on imports to meet its growing demand.

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