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Accelerating Energy Independence, Indonesia is Ready to Manage Crude Oil for Export

by Editor Asiatoday
January 30, 2025
in Business
Reading Time: 2 mins read
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Accelerating Energy Independence, Indonesia is Ready to Manage Crude Oil for Export

Balikpapan Refinery. Doc

ASIATODAY.ID, JAKARTA – The Indonesian government continues to show a strong commitment to increasing national energy independence.

In the future, crude oil exports will be optimized so that they can be utilized as much as possible by domestic oil refineries, thereby increasing national fuel oil production.

The Indonesian Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the government would divert all of the country’s share of crude oil that was previously planned for export to be processed at domestic refineries.

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In addition, the contractor’s crude oil that does not meet specifications is also required to be processed and blended so that it meets the standards required for domestic refinery consumption. This policy is an important step in accelerating the achievement of the goal of energy self-sufficiency.

“We have asked domestic refineries to utilize all crude, including those previously deemed not to meet specifications so that crude exports are decreasing,” said Bahlil in Jakarta, quoted Thursday, January 30 2025.

The government is determined to continue increasing the capacity and flexibility of domestic refinery technology. Major refineries such as Balikpapan, Cilacap and Dumai are now capable of processing crude oil with various specifications, including types of crude oil that were previously considered not to meet standards.

The government also continues to encourage the acceleration of the construction of new refineries such as the Tuban and Balongan refineries to increase processing capacity in the next few years.

Estimated crude oil exports this year are around 28 million barrels. Around 12-13 million barrels are targeted to be optimized to increase the supply of domestic oil refineries.

For this reason, the Ministry of Energy and Mineral Resources asked the Special Upstream Oil and Gas Task Force (SKK Migas), Cooperation Contract Contractors and PT Pertamina (Persero) to implement this. (AT Network)

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