Indonesia has inaugurated a major upgrade to its Balikpapan refinery, a long‑delayed project that President Prabowo Subianto says will help the country curb its dependence on imported fuel. The US$7.4 billion expansion—one of the largest in the nation’s history—boosts the refinery’s capacity from 260,000 barrels per day to 360,000 bpd, making it Indonesia’s biggest processing facility.
The upgrade, operated by state‑owned Pertamina, is central to Jakarta’s push for greater energy self‑sufficiency. Energy Minister Bahlil Lahadalia said the expanded plant will significantly increase domestic production of higher‑octane gasoline and could reduce annual gasoline imports from 24 billion litres to 19 billion litres. He added that Indonesia aims to eventually stop importing gasoline altogether, though no timeline was provided.
President Subianto framed the refinery’s expansion as part of a broader national strategy to strengthen energy security. “With the energy sources we have, we can actually produce our own energy, without needing to import,” he said at the inauguration, calling the project a step toward long‑term independence in fuel supply.
The Balikpapan upgrade is the first major refinery expansion completed in more than three decades and is viewed as a critical test of Indonesia’s downstream ambitions. While the government hopes the project will catalyse further investment, analysts note that meeting rising domestic demand will require sustained progress across the country’s refining portfolio.
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