Two Petrol Refinery Projects Begin Construction, Indonesia Could Save Rp21 T on Fuel Imports
President Prabowo Subianto has just inaugurated the start of construction for 13 downstream projects in phase two, with a total estimated investment value of Rp116 trillion.
The groundbreaking ceremony for these 13 downstream projects took place in Cilacap, Central Java, on Wednesday (29/4/2026). In addition to Cilacap, the inaugurations were held simultaneously at several locations, including Cilacap in Central Java and Tanjung Enim in South Sumatra.
The inauguration event was also 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 inauguration, including the Head of SOE Holding 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 are from the energy sector, including capacity enhancements for oil refineries and fuel tanks.
Rosan detailed that the five energy sector projects are:
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 approximately US1.25billionperyear, equivalenttoRp21.5trillion(assuminganexchangerateofRp17, 255perUS).
“Indeed, in this groundbreaking, if we look at the 13, there are five projects 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 inauguration in Cilacap, Central Java, on Wednesday (29/4/2026).
“And of course, as we mentioned earlier, the construction of village fuel energy resilience, fuel in Maumere, Palaran, and also in Biak for food resilience and energy resilience in the East,” he added.
He explained that, in line with President Prabowo’s directives, they are striving for SOEs to become catalysts for national economic transformation.
“Because our mandate is to create added value, optimise assets, create efficiency, and of course, as state investments to provide the greatest possible benefits for the Indonesian people,” he said.
“And all of this, of course, we do accountably, efficiently, and oriented towards measurable and structured results, Mr President. And of course, this can proceed and grow according to our plans if we carry out strong and solid synergy from all stakeholders, both central government, regional government, implementing SOEs, law enforcement apparatus, and all stakeholders in Indonesia,” he continued.
“And of course, once again, your presence here, Mr President, gives us extraordinary motivation to complete this project on time as planned. And once again, Mr President, we will carry this out as the beginning of Indonesia’s great leap as a nation that is not only rich in natural resources but also sovereign in its processing, superior in its production, and prosperous in its outcomes,” he stated.
“Therefore, as a closing, we believe that downstreaming will become one of the engines of Indonesia’s prosperity in the future,” he emphasised.
List of 5 Downstream Projects in the Energy Sector:
- Construction of Petrol Refinery Facilities
SOE Holding: PT Pertamina (Persero)
Location: Dumai (Riau), Cilacap (Central Java)
• Development of petrol refinery capacity at the existing RU II Dumai and RU IV Cilacap facilities with a total capacity of 62 MBSD, targeted to come online 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
SOE Holding: PT Pertamina (Persero)
Location: Palaran (East Kalimantan), Biak (Papua), Maumere (East Nusa Tenggara)
• Development of three fuel terminals in Palaran (37,000 KL), Biak (46,000 KL), and Maumere (70,000 KL) with a total additional capacity of 153,000 KL, increasing national storage capacity by 3.1%.
• Implemented by Pertamina Patra Niaga and targeted to come online or operate in stages in 2027 (Maumere) and 2028 (Palaran, Biak).
• This project strengthens energy distribution reliability, particularly in eastern Indonesia, thereby promoting equitable development and reducing inter-regional price disparities.