Indonesia has unveiled an ambitious plan to invest approximately $40 billion in 21 strategic energy and natural resource projects throughout 2025. This initiative aims to bolster domestic energy security, reduce reliance on imports, and stimulate economic growth across various sectors.
Key components of the investment include:
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Construction of a 500,000 barrels-per-day oil refinery: Aimed at decreasing dependence on imported refined fuels, this refinery will process both domestic and imported crude oil.
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Development of coal gasification projects: Four projects located in South Sumatra and East Kalimantan will convert low-grade coal into dimethyl ether (DME), providing an alternative to imported liquefied petroleum gas (LPG).
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Establishment of a crude oil storage facility on Nipah Island: Designed to enhance energy resilience, this facility will have the capacity to store 1 million barrels of crude oil, ensuring a 30-day supply buffer.
The funding for these projects will be sourced from a combination of public and private investments, including contributions from Indonesia’s newly established sovereign wealth fund, Danantara. Launched in early 2025, Danantara aims to manage state-owned enterprise assets and attract foreign investment to support national development goals.
Energy Minister Bahlil Lahadalia emphasized that these projects are integral to Indonesia’s strategy to achieve energy self-sufficiency and economic resilience. The government anticipates that these initiatives will not only meet domestic energy demands but also position Indonesia as a competitive player in the global energy market.