Tuban Refinery Investment Final Decision Completed November 2024

JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia revealed the latest news regarding the final investment decision (FID) of the Grass root refinery (GRR) or Tuban Refinery project.

According to Bahlil, the final decision on the Tuban Refinery investment will be decided in November 2024.

"It is targeted that it will be completed in November 2024," Bahlil told the media crew when met at the Ministry of Energy and Mineral Resources Office, Friday, October 18.

According to Bahlil, this result was obtained from a report received from Pertamina to the Ministry of Energy and Mineral Resources two days ago or on Wednesday, October 16, 2024.

"This is according to the results of Pertamina's conversation with ESDM Yang which was reported just 2 days ago," continued Bahlil.

Bahlil said that he would solve the technical problems of the Tuban Refinery if he again had the mandate to become Minister of Energy and Mineral Resources in the government of Elected President Prabowo Subianto, remembering that he had two days remaining until October 20, 2024.

Moreover, Bahlil continued, he has also been involved in this project since he was still the Minister of Investment / Head of the Oenanaman Capital Coordinating Board (BKPM). According to him, he played a role in land acquisition, incentives and licensing.

"Technically, what is the problem, I haven't studied it yet, but if you say that trust and the mandate is still given to us to carry it out, then we will definitely detail what the problem is," he added.

Previously, while still serving as Minister of Investment, Bahlil revealed that Rosneft was still Pertamina's partner and denied the issue of Rosneft leaving the Tuban GRR.

According to him, currently the two companies are still negotiating again to accelerate the completion of this project.

"(Rosneft) did not leave. There were renegotiations," said Bahlil, quoted on Tuesday, July 30.

Bahlil said that the renegotiation process occurred because Russia's political conditions were still unstable.

Previously, Rosneft faced international sanctions due to the geopolitical war between Russia and Ukraine, making it difficult to provide funding for the national strategic project.

This Tuban Refinery project is a project owned by PT Pertamina (Persero) which holds 55 percent of shares and Rosneft holds 45 percent of shares.