Cilacap and Dumai Refinery Projects Begin Construction, Potentially Reducing Fuel Imports by Rp 21 Trillion
JAKARTA, KOMPAS.com - The construction project for oil refineries producing gasoline in Cilacap, Central Java, and Dumai, Riau, has officially begun. The project is being undertaken by PT Pertamina (Persero).
The inauguration was marked by the simultaneous groundbreaking in Cilacap, Central Java, by President Prabowo Subianto on Wednesday (29/2/2026).
Minister of Investment and Downstreaming, as well as CEO of Danantara Indonesia, Rosan Roeslani, stated that the project will increase domestic fuel production capacity while reducing reliance on imports.
“So, from the development of Cilacap and Dumai, it will reduce imports by approximately US$1.25 billion per year, Mr President,” said Rosan during the inauguration.
He explained that this project is part of the 13 strategic national downstreaming projects in phase two, which are being addressed simultaneously.
For the energy sector, one of the main focuses is the construction and development of fuel refinery facilities.
In detail, the development of the refineries in Cilacap and Dumai is targeted to increase additional capacity to 62,000 barrels per day (MBSD) and is planned to come online in the fourth quarter of 2030.
With that capacity, the project is estimated to be able to substitute gasoline imports of up to around 2 million kilolitres (KL) per year, equivalent to nearly 9.47 percent of the national supply-demand gap.
In addition to reducing fuel imports, the project is also expected to curb imports of derivative products such as LPG and propylene, and support the fulfilment of high-quality fuel needs like the Pertamax Series from domestic production.
Rosan added that within the downstreaming programme, in the energy sector, there are also projects to build operational fuel tanks at three locations: Palaran (East Kalimantan), Biak (Papua), and Maumere (East Nusa Tenggara).
The project includes the development of fuel terminals in Palaran with a capacity of 37,000 KL, Biak 46,000 KL, and Maumere 70,000 KL.
Thus, the total additional capacity reaches 153,000 KL, or an increase in national storage capacity of around 3.1 percent.
The implementation of this project is carried out by Pertamina Patra Niaga and is targeted to begin operations gradually in 2027 for Maumere, and 2028 for Palaran and Biak.
Rosan stated that the downstreaming projects need to be carried out to create added value in industry, strengthen the manufacturing sector, and open up employment opportunities, which ultimately impact national economic growth.
“These downstreaming projects will be implemented immediately to create added value, create industry, and of course, most importantly, create jobs,” he concluded.