Enviro News Asia, Jakarta — Russia has expressed interest in investing in oil refinery and storage infrastructure in Indonesia as part of efforts to strengthen the country’s long-term energy security and reduce dependence on fuel imports.
Minister of Energy and Mineral Resources Bahlil Lahadalia stated that the commitment follows a high-level meeting between Prabowo Subianto and Vladimir Putin.
“Following the directive of the President, we have continued discussions with the Russian government, and they have shown readiness to support Indonesia’s energy sector,” Bahlil said in Jakarta.
Indonesia currently consumes around 1.6 million barrels of fuel per day, while domestic production stands at approximately 600,000 barrels per day, leaving a significant gap filled by imports.
To address this, the government is accelerating refinery capacity expansion, including the Refinery Development Master Plan (RDMP) in Balikpapan, and implementing a 50% biodiesel mandate (B50) starting July 2026.
Bahlil noted that the additional capacity from RDMP Balikpapan is expected to significantly reduce fuel imports by up to 50%.
The proposed cooperation with Russia will be carried out through both government-to-government (G2G) and business-to-business (B2B) schemes. However, further negotiations are still required before final agreements are reached.
He clarified that the planned investment is separate from the Tuban refinery project, a joint venture between Pertamina and Rosneft Oil Company.
The development of refinery and storage facilities is considered crucial to increasing national energy reserves, improving supply flexibility, and mitigating the impact of global energy market volatility. (*)
