New Cilacap-Dumai Refineries Projected to Save Rp20 Trillion in Foreign Exchange Annually
PT Pertamina Patra Niaga (PPN) is accelerating the development of the Gasoline Refineries in Cilacap and Dumai through the National Downstreaming Phase II Project. The project is projected to save the state’s foreign exchange by up to around Rp20 trillion per year through the reduction of petroleum fuel (BBM) imports.
Corporate Secretary of Pertamina Patra Niaga, Roberth M.V. Dumatubun, stated that the refinery development is aimed at strengthening national energy independence while increasing the added value of the domestic energy industry. The project is also directed at bolstering national BBM stocks amid rising energy needs.
“Through the Dual Growth Strategy approach, Pertamina Patra Niaga is strengthening existing businesses while increasing refinery complexity to produce high-value products with global competitiveness,” said Roberth in his statement in Jakarta, quoted on Thursday (14/5/2026).
The Dumai Gasoline Refinery is targeted to produce around 0.9 million kilolitres of gasoline per year, 86,000 tonnes of LPG, and 124,000 tonnes of propylene. Meanwhile, the Cilacap Gasoline Refinery is projected to yield around 1.1 million kilolitres of gasoline per year, 50,000 tonnes of LPG, and 145,000 tonnes of propylene.
The development of these two refineries adopts a high conversion refinery concept, enabling the processing of higher added-value energy products. The production capacity is expected to contribute significantly to reducing BBM imports while strengthening national energy resilience.
Technically, the Dumai Gasoline Refinery will have a capacity of 30,000 barrels per day (bpd), while the Cilacap Gasoline Refinery reaches 32,000 bpd. Both facilities will be integrated with existing infrastructure to enhance operational efficiency.
“This initiative aligns with the Sustainable Development Goals (SDGs), particularly clean and affordable energy, economic growth, decent work and economic growth, and industry, innovation and infrastructure,” said Roberth.
PPN is also preparing the production of environmentally friendly petrol with sulphur content below 50 ppm. The refinery development is directed to support the Domestic Component Level (TKDN) target of 30 per cent.
From an economic perspective, the gasoline refinery development project is projected to absorb up to 6,000 workers during the construction and operational phases. The presence of this project is expected to drive local economic growth in the refinery areas while providing positive impacts on the national economy.
The construction of the Cilacap and Dumai Gasoline Refineries is part of the groundbreaking of 13 National Downstreaming Projects Phase II, which took place in April 2026 under the coordination of Danantara with a total investment of around Rp116 trillion and attended by President Prabowo Subianto.
The National Downstreaming Phase II Projects are spread across various regions, including the construction of BBM storage tanks, processing of coconut and nutmeg commodities in Central Maluku, increasing carbon steel capacity in Banten, the LPG substitution project to Dimethyl Ether (DME) in Tanjung Enim, to the optimisation of Buton Asphalt.