Indonesia's Oil Refinery Capacity Stagnant in the Last 10 Years

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Adi Ahdiat 07/10/2025 12:40 WIB

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According to OPEC data, the registered oil refinery capacity in Indonesia has been stagnant or has not increased during the period 2015-2024.

Registered Oil Refinery Capacity in Indonesia (1980-2024)

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Registered Oil Refinery Capacity in Indonesia (1980-2024)

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An oil refinery is a facility for processing crude oil into fuel oil (BBM) products ready for consumer use, such as gasoline, kerosene, diesel oil, and various derivative products.

According to data from the Organization of the Petroleum Exporting Countries (OPEC), in 1980, oil refineries in Indonesia had a registered processing capacity (nameplate capacity) of 426 thousand barrels per day.

Then, in 1984, its capacity nearly doubled to 814 thousand barrels per day.

Another increase occurred from the mid to late 1990s, with capacity reaching 1 million barrels per day.

However, in the last ten years, Indonesia's oil refinery capacity has been stagnant, with no significant additions.

During the 2015-2024 period, the nationally registered refinery capacity remained around 1.2 million barrels per day, as shown in the chart above.

In line with this data, Minister of Finance Purbaya Yudhi Sadewa recently criticized the performance of PT Pertamina (Persero) for not building new refineries.

He believes this affects the increase in energy subsidies, as it forces Pertamina to purchase more fuel oil products from Singapore, instead of processing and producing them domestically.

"We import a lot of diesel fuel, tens of billions of dollars a year. How many years have we been experiencing this? Decades, right? Have we ever built a new refinery? Never," said Purbaya during a working meeting with Commission XI of the DPR on Tuesday (September 30, 2025).

"So, later, if you gentlemen and ladies (DPR members) meet Danantara again, ask Pertamina to build new refineries," he said.

Editor : Adi Ahdiat

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."