For the First Time, the Coal and Oil Refining Industries Have Grown in the Last 5 Years

The Central Statistics Agency (BPS) reports that the Gross Domestic Product (GDP) of the coal and oil refining industry at current prices (ADHB) amounted to Rp320.01 trillion in 2021. This value represents 9.8% of the manufacturing industry.

Measured in terms of GDP at constant 2010 prices (ADHK), the coal and oil refining industry grew by 0.57% last year compared to the previous year. This growth is the first in the last 5 years, as shown in the graph.

Over the past 11 years, the industry has tended to experience pressure and has only recorded positive growth twice, namely in 2016 and 2021. This indicates that the downstreaming of the coal and oil and gas refining industry is still far from expectations.

Coal exports reaching 300 million tons per year have not significantly boosted national coal industry growth. This indicates that the downstream coal industry has not yet developed. As is known, Indonesia is one of the world's largest coal exporters.

Similarly, with the downstream oil industry. Although Indonesia's fuel oil (BBM) needs continue to grow, it has not impacted the growth of the coal and oil refining industry.

To meet domestic BBM needs, the country orders the import of refined oil up to tens of millions of tons from abroad every year.