Indonesia to make more fuel, plastic components to meet demand

INDONESIA is ramping up production of domestic fuel and plastic components to meet rising demand and cut reliance on imports.

Kilang Pertamina Internasional, a refinery and petrochemical unit of state oil and gas firm Pertamina, aims to process about 330 million barrels of crude next year, near its pre-pandemic level, up from 320 million in 2022, according to president director Taufik Aditiyawarman. It also plans to double its petrochemical output in West Java and build a new facility in East Java.

“We have not seen any sign of a recession,” Aditiyawarman said in an interview last week. “Demand will keep growing.”

The move will help South-east Asia’s largest economy curb fuel imports that now account for about half of the national demand. This year’s consumption of Pertamina’s most-used petrol grade known as Pertalite and gasoil is expected to exceed government projection as economic activities pick up after the pandemic.

Crude oil intake fell by almost 8 per cent in 2020 and a further 10 per cent in 2021 at the height of the pandemic to 301 million barrels.

Pertamina wants to double its secured supply of crude oil to 50 days from 21 as refinery capacity expands and the economy rebounds. Fuel consumption is forecast to steadily increase before peaking at 1.5 million barrels per day in 2030 when the nation begins its path towards a net-zero emission goal by 2060. BLOOMBERG