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Oil Price Hike Prompts Indonesia to Evaluate Refinery Projects
TEMPO.CO, Jakarta – The high price of oil in global markets serves as a momentum for the Indonesian government to evaluate domestic refinery projects. Moreover, state oil and gas company Pertamina has just adjusted the price of non-subsidized vehicle fuels and LPG.
These steps were taken amidst the rupiah depreciation against the US dollar, creating risks of raising the import value of fuel and LPG.
Pertamina said it needs up to US$40 billion (Rp569.44 trillion) of investment to finish its refinery projects. In the company’s business portfolio, there are 14 refinery projects targeted for completion by 2027.
Meanwhile, PT Kilang Pertamina Internasional’s (KPI) director of business development Joko Widi Wijayanto said that the refinery projects will boost capacities up to 1.5 million barrels per day (bpd), from the current size of around 1 million bpd. The projects will also raise Pertamina’s production capacity from today’s 729,000 bpd to 1.5 million bpd.
KPI is the refining and petrochemical sub-holding company of Pertamina.
In a plenary cabinet meeting some time ago, President Joko Widodo asked all SOEs—including PLN and Pertamina—to continue to take efficiency measures and save up on costs, especially now when the world is hit by the food and energy crisis.
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Source: https://en.tempo.co/read/1611159/oil-price-hike-prompts-indonesia-to-evaluate-refinery-projects