National Oil Refinery Development Requires US$36 Billion

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07/06/2017 10:47 WIB

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National Refinery Revitalization and Development Costs

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National Oil Refinery Development Requires US$36 Billion

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National Refinery Revitalization and Development Costs

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Revitalizing existing oil refineries and building new ones requires massive investment. As reported by Bisnis Indonesia (June 7th), the cost of building national oil refineries reaches US$36.27 billion, or approximately Rp 482 trillion at an exchange rate of Rp 13,300 per US dollar.

This amount comprises US$15.27 billion, or around Rp 203 trillion, for the revitalization of existing refineries, and US$21 billion, or Rp 279 trillion, for the construction of new refineries. To reduce fuel oil (BBM) imports and save foreign exchange amid rising BBM demand due to the increasing number of motor vehicles, the government is upgrading domestic oil refineries.

To increase the national oil refinery production capacity, the government plans to revitalize existing refineries. Furthermore, the government also plans to build two new refineries: the Bontang Refinery with a production capacity of 300,000 barrels per day (bpd) and the Tuban Refinery with a capacity of 300,000 bpd.

"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."

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National Oil Refinery Development Requires US$36 Billion

National Oil Refinery Development Requires US$36 Billion

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National Oil Refinery Development Requires US$36 Billion

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