Indonesia has unveiled a significant escalation of its energy strategy, announcing plans to construct multiple oil refineries across its archipelago with a combined capacity of 1 million barrels per day (bpd). This ambitious initiative, revealed by Investment Minister Bahlil Lahadalia, marks a substantial increase from the previously planned single refinery with a 500,000 bpd capacity, underscoring the nation's determination to achieve energy self-sufficiency.

The decision, made following a meeting between Minister Lahadalia and President Prabowo Subianto, reflects Indonesia's growing urgency to reduce its reliance on imported crude oil and refined fuels. Currently, the nation imports approximately 1 million bpd to meet its domestic energy demands, a figure the government aims to drastically reduce through this strategic infrastructure development.

The new refineries will be located on several islands, including Kalimantan and Sulawesi, ensuring a more distributed and resilient energy supply across the vast Indonesian archipelago. This multi-location approach aims to enhance regional energy security and stimulate economic development in these areas.

In addition to the refinery expansion, Indonesia also plans to build additional oil storage facilities with a capacity of 1 million barrels. This move is designed to bolster the nation's energy reserves and provide a buffer against potential supply disruptions, further strengthening its energy security posture.

The government's push for increased refining capacity is part of a broader strategy to enhance the onshore processing of Indonesia's abundant natural resources. Last week, the government announced its intention to accelerate 21 natural resource processing projects, valued at $40 billion. These projects include coal gasification, oil storage expansion, and the now-expanded oil refining initiative.

Minister Lahadalia emphasized the importance of these projects, stating that they are crucial for Indonesia's long-term economic and energy security. The increased processing of natural resources within the country is expected to create jobs, boost local industries, and generate significant revenue.

Indonesia's drive for energy independence comes at a time of increasing global energy uncertainty. The nation's abundant natural resources, including oil, gas, and coal, provide a strong foundation for this ambitious strategy. By investing in its refining and storage infrastructure, Indonesia aims to position itself as a key player in the regional energy market.

The government's commitment to this project is evident in the swift decision to double the planned refining capacity. This demonstrates a proactive approach to addressing the nation's energy challenges and a clear vision for its future energy landscape.