Building 2 Petrol Refinery Projects, Indonesia Can Cut Fuel Imports by 10%
President Prabowo Subianto has just inaugurated the start of construction, or groundbreaking, of 13 second-phase downstream projects with a total estimated investment value of Rp 116 trillion.
The groundbreaking ceremony for these 13 downstream projects took place in Cilacap, Central Java, on Wednesday (29/4/2026). Besides Cilacap, the inaugurations were also held simultaneously in several locations, including Tanjung Enim, South Sumatra.
The ceremony was attended by several state officials, including Coordinating Minister for the Economy Airlangga Hartarto, Coordinating Minister for Food Zulkifli Hasan, Minister of Energy and Mineral Resources Bahlil Lahadalia, Minister of Agriculture Amran Sulaiman, Minister of Marine Affairs and Fisheries Sakti Wahyu Trenggono, Minister of Industry Agus Gumiwang Kartasasmita, and National Police Chief Listyo Sigit Prabowo.
Minister of Investment and Downstreaming and CEO of Danantara Rosan Roeslani, along with other Danantara officials, also attended the ceremony, including the Head of BP BUMN and COO of Danantara Dony Oskaria, and CIO of Danantara Pandu Sjahrir.
CEO of Danantara Rosan Roeslani informed the President that this groundbreaking inauguration is a continuation of the first phase at 11 locations conducted on 6 February 2026.
Of the 13 projects starting construction today, Rosan stated that five come from the energy sector, including capacity enhancements for oil refineries (BBM) and fuel tanks.
Rosan detailed that the five energy sector projects are as follows:
Petrol refinery in Cilacap, Central Java
Petrol refinery in Dumai, Riau
Operational fuel tank in Palaran, East Kalimantan
Operational fuel tank in Biak, Papua
Operational fuel tank in Maumere, East Nusa Tenggara.
Rosan stated that the construction of these petrol refinery facilities in Dumai and Cilacap will save on fuel imports by around US1.25billionperyear, equivalenttoRp21.5trillion(assuminganexchangerateofRp17, 255perUS).
“Indeed, in this groundbreaking, looking at the 13 projects, there are five in the energy sector, namely the construction of petrol refinery facilities in Cilacap and Dumai to strengthen energy resilience and reduce dependence on fuel imports. From the construction in Cilacap and Dumai, this will reduce imports by approximately 1.25 billion dollars per year,” he said in his report to President Prabowo during the groundbreaking ceremony in Cilacap, Central Java, on Wednesday (29/4/2026).
“And of course, as we mentioned earlier, the construction of fuel resilience for villages, fuel in Maumere, Palaran, and also in Biak for food security and energy resilience in the eastern part,” he added.
Cut Fuel Imports by 10%
Head of BP BUMN and COO of Danantara Dony Oskaria explained that the potential savings on petrol imports of US$1.25 billion is due to the increased processing capacity for fuel, especially petrol, in the two refineries, totalling 62,000-70,000 barrels per day (bpd).
With this additional petrol production, it means Indonesia’s fuel imports will be cut by around 10% from the current level.
“Because so far we have been net importers for fuel. From our domestic needs of about 1.6 million barrels per day (bpd), our production is about 600 (thousand bpd), so we import 1 million (bpd),” he said.
“And from these imports, the largest portion is gasoline, petrol. Now this refinery is specifically for petrol. So the refinery in Cilacap and Dumai with the capacity mentioned, we aim for about 70,000 barrels per day, although we gave the minimum of about 65,000, 62,000, but our target is 70,000 barrels per day. If 70,000 barrels per day, that impacts about 10% of our total imports that will be reduced,” he explained.
List of 5 Downstream Projects in the Energy Sector:
- Construction of Petrol Refinery Facilities
BUMN Holding: PT Pertamina (Persero)
Location: Dumai (Riau), Cilacap (Central Java)
• Development of petrol refinery capacity (petrol) at the existing RU II Dumai and RU IV Cilacap facilities with a total capacity of 62,000 barrels per day (bpd), targeted to operate in Q4 2030.
• This project substitutes petrol imports by up to 2 million KL per year or 9.47% of the national supply-demand gap, supports the fulfilment of Pertamax Series from domestic production, and reduces imports of by-products including propylene and LPG.
• This project contributes to strengthening national energy resilience while maintaining energy price stability, ultimately supporting people’s purchasing power and economic activities.
- Construction of Operational Fuel Tanks
BUMN Holding: PT Pertamina (Persero)
Location: Palaran (East Kalimantan), Biak (Papua), Maumere (East Nusa Tenggara)
• Development of three fuel terminals in Palaran (37 thousand KL), Biak (46 thousand KL), and Maumere (70 thousand KL) with a total additional capacity of 153 thousand KL, increasing national storage capacity by 3.1%.
• Implemented by Pertamina Patra Niaga and targeted to be onstream or operational in stages in 2027 (Maumere) and 2028 (Palaran, Biak).
• This project strengthens the reliability of energy distribution, especially in eastern Indonesia, thereby promoting equitable development and reducing inter-regional price disparities.