Chief Executive Officer of Danantara Indonesia, Rosan Roeslani, stated that the government will construct 17 modular oil refineries valued at 8 billion U.S. dollars, equivalent to IDR 130 trillion, in collaboration with an American company.

The refineries will be used to process crude oil imported from the United States.

The import of U.S. crude oil is part of a recently concluded tariff agreement between Indonesia and the United States.

“Regarding investment in this refinery, yes, it is indeed one of the cooperation commitments we want to pursue together with the American company,” said Rosan at the Ministry of Investment office in Jakarta (29/7).

$8 Billion Plan to Process Imported U.S. Crude Oil

Rosan explained that the refinery infrastructure is necessary to accommodate the crude oil being imported from the United States.

“Because if we look at it, one of the agreements involves importing crude oil into Indonesia. Naturally, we need refineries, and those refineries must be compatible with the characteristics of each imported crude oil,” he said.

He emphasized that the modular refinery plan forms part of the broader business cooperation with the U.S. firm.

Rosan also ensured that the government would not bear the financial burden of importing crude oil from the U.S.

Crude Oil Imports Shift Toward the United States

According to Rosan, Indonesia’s crude oil import distribution will be restructured. “In the past, we imported crude oil from Nigeria and Saudi Arabia. Now, the portion might lean more toward importing from the United States,” he said.

He added, “This investment is a commitment, and we are currently in further discussions about the details. But we ensure everything must comply with Indonesian regulations.”

Modular Refineries Linked to U.S. Trade Agreement

The modular refinery construction is reported to be part of the import tariff negotiation between Indonesia and the United States.

The Investment Management Agency, Danantara, is said to be involved in the project.

According to Kontan.ID, Danantara is planning to sign a contract related to engineering, procurement, and construction (EPC) worth 8 billion U.S. dollars with U.S. engineering company KBR Inc.

PHOTO: BPMI SETPRES

This article was created with AI assistance.