Coordinating Minister for Economic Affairs Airlangga Hartarto said Tuesday that the country will no longer need to import diesel after President Prabowo Subianto officiated the Balikpapan Refinery Development Master Plan (RDMP) project.
“This marks a milestone in Indonesia’s energy independence. We have achieved self-sufficiency in diesel fuel, and the government will continue working toward independence in other energy products,” Hartarto said at an event ahead of the Jakarta Food Security Summit.
President Prabowo inaugurated the RDMP project on Monday, describing it as Indonesia’s first major refinery development in 32 years.
The facility, now the nation’s largest, is expected to reduce reliance on imported fuel and strengthen energy security.
Energy and Mineral Resources Minister Bahlil Lahadalia said the US$7.4 billion project increased the refinery’s processing capacity from 260,000 to 360,000 barrels per day, meeting up to a quarter of national demand.
He added the expansion is projected to cut fuel imports by more than US$4 billion annually, contribute US$30.5 billion to GDP, lower sulfur content in fuel products, and raise the yield of high-value products to nearly 92 percent.
The upgraded refinery will also produce gasoline, liquefied petroleum gas, and petrochemicals.
Translator: M. Harianto, Tegar Nurfitra
Editor: Aditya Eko Sigit Wicaksono
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