By Calvin Purba
Yuliot Tanjung, Deputy Minister of Energy and Mineral Resources (MEMR), confirmed that the planned new oil refinery will be located on Pemping Island, near Batam, in Riau Islands Province.
“The refinery will be situated on Pemping Island, near Batam,” Yuliot said on Thursday (March 6).
On Wednesday, Minister of Energy and Mineral Resources Bahlil Lahadalia announced the Indonesian government's plans to build a new US$12.5 billion oil refinery with a processing capacity of 500,000 barrels per day. This initiative is aimed at ensuring a more stable and sustainable energy supply for the country.
The refinery is designed to process both domestic and imported crude oil, with an expected daily output of 531,500 barrels of various petroleum products, including fuel oil.
Read also : Indonesia plans $12.5 billion oil refinery
Alongside the refinery, the Ministry also plans to develop an oil storage facility with a capacity of 1 million barrels on Nipa Island, also located in the Riau Islands.
“The storage capacity will be around 1 million barrels,” said Tri Winarno, Acting Director General of Oil and Gas at ESDM.
Bahlil previously outlined plans to construct an Energy Buffer Reserve (CPE) facility on Nipa Island. This facility is expected to increase Indonesia’s national energy resilience reserve from 21 days to 30 days.
Editing by Reiner Simanjuntak
