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The government is determined to increase national oil production and construct refineries with a total capacity of one million barrels per day amidst the downward trend in oil and gas lifting in recent years.
The decision was made upon a limited Cabinet meeting presided by President Prabowo Subianto on Monday, March 1, 2025.
"We are working on increasing production by accelerating exploration to increase domestic capacity," Deputy Minister of Energy and Mineral Resources (ESDM), Yuliot Tanjung, said on Wednesday, March 12, 2025.
In addition, the Ministry of Energy and Mineral Resources will also accelerate the tender process for new oil and gas work areas. The one million barrel oil refineries will be built in several locations, namely Sumatra, Kalimantan and the Eastern Indonesia Region.
The government is also consolidating the investment value and construction schedule of the refineries. The National Downstream and Energy Security Task Force is targeting an increase in crude oil processing capacity from 500 thousand barrels per day (bpd) to 1 million bpd.
Head of the National Downstream and Energy Resilience Task Force, Bahlil Lahadalia, said that the procurement of oil processing installations will be carried out in 16 locations in Kalimantan, Java, Sulawesi, Maluku and Papua.
Meanwhile, there are two companies from the U.S. and China that are potential technology providers for this project.
"The investment value of this project can only be confirmed after the technology presentation is done. After that, we can confirm the exact figure," he said.
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