JAKARTA - Minister of Energy and Mineral Resources (ESDM) Bahlil Lahadalia said the refinery project with a capacity of 500,000 barrels would be built in Sumatra.
"It was built in Sumatra," said Bahlil when reported by ANTARA, Friday, March 7.
Bahlil explained that the Sumatra election as the site for the construction of a refinery with a capacity of 500,000 barrels was based on business considerations.
The construction of the refinery is one of the projects that will receive funding from the Indonesian Anagata Nusantara Resources Investment Management Agency (Danantara) in the first batch.
"Yes, it's a business consideration," he said.
The government continues to accelerate the downstream agenda by preparing 21 first-stage projects that will be funded with an investment of US$40 billion.
Bahlil said these projects were part of the downstream target of US$618 billion by 2025.
In addition to refinery construction, several other main projects that will be funded include the construction of oil storage facilities on Nipah Island, Riau Islands to strengthen national energy security.
Furthermore, he added, there is a Dimethyl Ether (DME) downstream project made from coal as a substitute for LPG imports.
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In addition to the energy sector, said Bahlil, downstreaming will also be carried out on other commodities such as copper, nickel, bauxite to alumina, as well as the agricultural, fishery, and forestry sectors.
Bahlil emphasized that funding for these projects does not depend entirely on foreign investment. For example, downstreaming of DME.
The government will continue to increase the number of downstream projects in the next stage to achieve the target of 26 commodity sectors that President Prabowo has prioritized.
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