inp.polri.go.id - Jakarta. The government announced plans to build 17 new oil refineries in various regions to reduce Indonesia's dependence on imported fuel, which currently accounts for more than 60 percent of national demand.

Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that the construction of these refineries is urgent, given that the capacity of existing refineries only covers around 30–40 percent of domestic demand.

"Our current refineries are insufficient. The solution is to build new refineries," said the Minister of ESDM on Tuesday (7/29/2025).

The refineries to be built will be modular or small-scale, and are planned to be spread across several strategic locations to streamline energy distribution and reduce logistics costs.

This plan aligns with President Prabowo Subianto's directive, emphasizing the importance of allocating construction sites for greater efficiency and practicality.

The areas targeted for refinery locations include Lhokseumawe, Natuna, Cilegon, Surabaya, Pontianak, Makassar, Bitung, and Fakfak. A total of 18 locations are included in the downstreaming and energy security priority project documents submitted by the Downstreaming Task Force to the Danantara Investment Management Agency.

This project is estimated to require an investment of up to IDR 160 trillion and is projected to employ 44,000 people.

With the construction of these new refineries, the government hopes that Indonesia can transition from being a net energy importer to achieving national energy independence in the next few years.

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