The Indonesian Ministry of Energy has announced plans to build several crude oil refineries with a total capacity of 1 mb/d. The new refineries will be built across 16 locations in Indonesia, including the islands of Kalimantan, Java, Sulawesi, and Maluku-Papua. This announcement is an upgrade from the planned single 532 kb/d refinery project which was announced earlier in March 2025.
In addition, to enhance national energy supply resilience, the Indonesian Government also plans to build a 1 mb/d oil storage tank on Pulau Nipah, Batam. It will also encourage the development of Dimethyl Ether (DME) as a processed gas from coal to replace Liquified Petroleum Gas (LPG); a DME facility could be installed in coal-rich Sumatra or Kalimantan.
Indonesia's refining capacity stood at 1,151 kb/d at the end of 2023. The country has not built a new refinery since 1994, leaving it reliant on imports to meet its demand for oil products. Earlier in March 2025, the Indonesian Government approved a US$40bn plan to develop 21 downstream natural resource processing projects in 26 mining commodity sectors.
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