Indonesia and US invest $8 billion to build 17 refineries in partnership

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Indonesia plans to build 17 modular refineries in partnership with U.S. firms, with a total investment of $8 billion (about 130 trillion rupiah), to process crude oil imported from the United States.The project, which is part of the recent import tariff agreement between Indonesia and the U.S., is being led by Indonesia's Danantara, which is expected to sign an Engineering, Procurement and Construction (EPC) contract with U.S. engineering firm KBR Inc. Indonesia will restructure its sources of crude oil imports, reducing the proportion of imports from traditional suppliers such as Nigeria and Saudi Arabia, and increasing imports from the U.S. Danantara's CEO has pledged that U.S. crude oil imports will not be a financial burden on the Indonesian government, and that all operations will be in compliance with Indonesian laws and regulations. The construction of the modular refinery is an important part of the commercial cooperation between Indonesia and the U.S. and needs to match the characteristics of the imported crude oil. The two sides are still negotiating the details of the project, in which the Indonesian investment management agency (Investasi Danantara) will be involved.

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