Bahlil Says Oil Refinery With A Capacity Of 500,000 Barrels In Sumatra Will Be Funded By Danantara

Minister of Energy and Mineral Resources Bahlil Lahadalia said the oil refinery construction project with a capacity of 500,000 barrels built close to Singapore in the Sumatra region would be partially financed by Danantara.

He hopes that other investors, including Pertamina, will invest in the construction of the oil refinery.

"Some (funded) by Danantara, some of us are looking for it. If Pertamina can participate, that's much better," said the Minister of Energy and Mineral Resources in response to reporters' questions when he was met at the Presidential Palace Complex, Jakarta, quoted by Antara, Saturday, March 8.

However, Bahlil has not been able to mention how much financing will be when he has received investment other than Danantara.

"It's not there yet," continued Bahlil.

In a separate location, Bahlil said that the Sumatra area was the location for the construction of an oil refinery with a capacity of 500,000 barrels due to business considerations.

"Yes, it is a business consideration," Bahlil told reporters when met at the Ministry of Energy and Mineral Resources Office, Jakarta, Friday.

The refinery construction is part of the first 21 downstream projects that will receive an investment fund disbursement of US$40 billion. The projects are also part of the downstream target of US$618 billion by 2025.

In addition to refinery construction, several other main projects also include the construction of oil storage facilities on Nipah Island, Riau Islands, to strengthen national energy security.

Then, there is also the coal standard Dimethyl Ether (DME) downstream project as a substitute for LPG imports.

In addition to the energy sector, Bahlil continued downstreaming also targeting other commodities such as copper, nickel, alumina bauxite, then the agricultural, fishery, and forestry sectors.

Bahlil emphasized that funding for these projects does not depend entirely on foreign investment, for example for the downstreaming of Dimethyl Ether (DME).

He emphasized that the government will continue to increase the number of downstream projects in the next stage to achieve the target of 26 commodity sectors which are the priority of downstreaming the government of President Prabowo Subianto.