The Minister of Energy of Indonesia Bahlil Lahadalia announced that the country is to build oil refineries on several of its islands, including Kalimantan and Sulawesi, with a total capacity of 1 million barrels per day (mmbbl/d) increasing from 500,000 b/d, Reuters reported.

Previously, the government stated its desire to accelerate 21 natural resource processing projects worth $40 billion, including several coal gasification projects, building oil storage and expanding its oil refining capacity.

The Minister explained that Indonesia currently imports around 1 mmbbl/d  of crude oil and fuel to meet domestic demand, noting that the country also plans to build additional oil storage with capacity of 1 million barrels to ensure energy security,

It should be noted that Indonesia has recently started to increase the processing of its natural resources onshore.