"We are trying to increase domestic production by accelerating exploration," Deputy Minister of Energy and Mineral Resources, Yuliot Tanjung, said here on Wednesday.
By increasing oil and gas lifting, the government aims to prevent an increase in crude oil imports due to the rise in national refinery capacity, he added.
Indonesia is currently experiencing a downward trend in oil and gas lifting.
"We will also accelerate the tender auction process for new work areas," Yuliot informed.
Earlier, Energy and Mineral Resources Minister Bahlil Lahadalia announced the government's plan to build oil refineries with a total capacity of 1 million barrels per day, up from the earlier target of 500 thousand barrels per day.
The refineries will be constructed in several regions, including Sumatra, Kalimantan, Java, Sulawesi, and Maluku-Papua, to ensure equal oil distribution.
The construction of the refineries is among the 21 first-phase downstream projects that will be carried out with an investment of US$40 billion. The projects are also part of the downstream investment target of US$618 billion for 2025.
In addition to the refineries, other major projects include the construction of an oil storage facility on Nipah Island, Riau Islands, to strengthen national energy security.
Lahadalia further underlined the need to develop a downstream project to obtain dimethyl ether (DME) from coal raw material that can serve as a substitute for LPG imports.
In addition to the energy sector, downstreaming efforts will target other commodities such as copper, nickel, bauxite alumina, as well as the agriculture, fisheries, and forestry sectors, he said.
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Translator: Putu Indah Savitri, Yashinta Difa
Editor: Azis Kurmala
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