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View all search resultsGovt seeks to end fuel imports by 2026, expects Pertamina to boost production
The Energy and Mineral Resources Ministry expects Pertamina to complete five multi-billion dollar refinery projects between 2022 and 2026
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T
he government has encouraged state-owned oil giant Pertamina to increase domestic oil production while the country reduces consumption in order that Indonesia can stop importing the commodity by 2026 in an effort to curb the oil and gas trade deficit.
The Energy and Mineral Resources Ministry expects Pertamina to complete five multi-billion dollar refinery projects between 2022 and 2026. The refineries will produce oil-based fuel and biofuel.
“By 2026, fuel demand and production will be equal,” the ministry’s freshly appointed oil and gas director general, Tutuka Ariadji, told lawmakers at a hearing in Jakarta on Nov. 16.
The government is on a campaign to lower Indonesia’s oil and gas trade deficit, which undermines the rising overall trade surplus recorded by the country so far this year.
Indonesia’s oil and gas imports amounted to US$1.08 billion in October this year, down 8 percent from the previous month and a much steeper drop of 38.54 percent from October last year, when the country was still coronavirus-free, Statistics Indonesia (BPS) data shows.
On the supply side, the government expects Pertamina’s refining subsidiary, PT Kilang Pertamina Internasional (KPI), to finish expanding its refineries in Balongan, West Java; in Cilacap, Central Java, and in Balikpapan, East Kalimantan, as well as to finish building its new refinery in Tuban, East Java.
Among the four projects, the Tuban project is aimed at filling the largest gap in fuel supply once it is operational in 2026, according to the ministry’s calculations.
