Impact of Oil Refinery Development In Tuban City

Felix Nizar Fazari

Industrial Engineering, Trunojoyo University

An oil refinery is an industrial plant that processes crude oil into petrolium products
that can be directly used as well as other products that become raw materials for the
petrochemical industry. In Indopnesia oil and gas energy is the main strength of the
Indonesian economy, in the process of development in addition to considering growth and
equity must also consider the impact of economic activity on the lives of social communities.
Many things are discussed about the industry that the industry has supported the economy,
one of which is extractive industry. Extractive industries are industries that take goods from
soil, air or water. In general, products from extractive industries are included in raw form
processed by the manufacturing industry to produce finished products, such as the processing
of oil refineries in Jenu District of Tuban Regency. Industrial development as a major driver
in sustainable economic growth, is geared towards solving fundamental socioeconomic
problems. This is as in the problem of expanding employment opportunities, meeting the
needs of the community, leveling the income of a just society, and accelerating the alleviation
of the people from poverty by always preserving the function of the environment. To know
the process and pattern of development, it is necessary to know the aspects that affect the
economy of the region. This includes economic growth that is influenced by the orientation of
economic development in the region, the running of industrial development that has been
achieved will have an impact on the economic sector, Human Resources (HR), and
community welfare. The construction of the oil refinery industry built in Jenu District of
Tuban Regency is one of the largest industries in Asia. The reason for the construction of the
oil refinery industry built in Jenu District of Tuban Regency is one of them is close to the sea
so it is very easy to transport oil shipments throughout Indonesia. I think there are many
positive impacts felt by the people of Jenu District of Tuban Regency which is around the oil
refinery industry, so the construction of this oil refinery is very necessary. The positive
impact is the opening of jobs, adding business opportunities such as Kos businesses, can meet
the needs of the community, increase people's income, and can get people out of poverty. In
addition, of course, there are also negative impacts that exist, namely the reduction of fertile
agricultural land and air pollution.
It should be known that the industry in Indonesia has a very important role as an
increase in the country's foreign exchange income. With industrial development, especially in
oil refineries will affect macroeconomic and microeconomics development. In
macroeconomics, namely as a form of availability of employment services that have an
influence on the unemployment rate. While in microeconomics, it has an influence on
reducing production costs. Based on the assessment of the Central Statistics Agency, the
unemployment rate in the city of Tuban in August 2020 rose to 4.81%. If the unemployment
rate increases then the crime rate in Tuban City will also increase.
According to Suratmo (Siska, 2013: 482) that the construction of a project since the
planning is already aimed at improving socioeconomics. So that theoretically the impact of
each project must have a positive for local, provincial, national or international communities.
Because the development of a project must consider the impact of economic activity on the
life of social society.
 In the construction of oil refineries in Jenu District of Tuban Regency there are several
negative impacts one of which is causing air pollution. Reflecting on the previous incident
quoted from the news halopantura.com, the Indonesian Cement Factory in Tuban City had
received strong protests from local residents. This is due to production activities that cause
dust or air pollution. So it does not rule out the possibility that this oil refinery will also get
protests from local residents. For this reason, the district government is expected to find a
solution to the problem.
Compared to the negative aspects, many positive aspects result from the construction
of oil refineries. The construction of oil refineries located in Tuban Regency can improve the
quality of life of the community, expand employment, support equitable development,
increase income and community welfare. The construction of the oil refinery industry built in
Jenu District of Tuban Regency is one of the largest industries in Asia. Based on writings
from bangsaonline.com has conducted interviews with project coordinator NGRR Tuban,
Kadek Ambara Jaya said, the establishment of an oil refinery in Jenu sub-district, Tuban
Regency will require thousands of labor absorption during the construction process and when
operating. He detailed that the workforce during the construction from May 2019 needed
2,000 people. In 2020 it takes 7,000 to 8,500 people, 30,000 to 45,000 workers, and by 2025
it takes a workforce of about 2,500 to 5,000 people. While when operating it takes 2,500
people as organic pertamina, and 5,000 people as outsourced personnel. Based on these data,
the oil refinery that will stand in tuban city will have many positive impacts for the
surrounding community. In addition, this oil refinery will also encourage the economy in
Tuban City will be better.
From the above explanation it can be concluded that the construction of oil refineries
in the city of Tuban has a lot of positive impact. The positive impact is that it can encourage
the economy of Tuban City to be better. In addition, the most important thing is that the
development can improve the quality of life of the community, expand employment, support
equitable development, increase income and community welfare. After the project was
successfully carried out properly and smoothly, the City of Tuban will be the presence of
technology and transportation that is sophisticated and very useful for the community,
especially the people of Tuban City. It is likely that the city of Tuban in the future will
become a large Industrial city and it does not rule out the possibility that the city that has the
nickname Tuban Bumi Wali will be one of the Advanced cities in Indonesia.

REFERENCES
Skripsi
Dampak Positif dan Negatif Pembangunan Kilang Minyak Terhadap Perekonomian
Masyarakat Kecamatan Jenu Kabupaten Tuban. Siti Kholimatus Sadiyah, Universitas
Islam Negeri Sunan Ampel, Fakultas Ekonomi dan Bisnis Islam Program Studi Ilmu
Ekonomi Surabaya, tahun 2020
Website
(19 November 2020). Badan Pusat Statistik Kabupaten Tuban. Accessed on 13 Desember
2021, from https://tubankab.bps.go.id/pressrelease.html?Brs_sort=judul_ind
(10 November 2021). Kilang Minyak. Accessed on 13 Desember 2021, from
https://id.wikipedia.org/wiki/Kilang_minyak
(8 Agustus 2019). Warga Tuban Keluhkan Polusi Udara Akibat Pabrik Semen Indonesia.
Accessed on 13 Desember 2021, from
https://www.halopantura.com/warga-tuban-keluhkan-polusi-udara-akibat-pabrik-semen-
indonesia/
(27 Januari 2019). Kilang Minyak Berdiri di Tuban Butuh Ribuan Tenaga Kerja. Accessed on
13 Desember 2021, from https://kumparan.com/bangsaonline/kilang-minyak-berdiri-di-
tuban-butuh-ribuan-tenaga-kerja-1548605896527076307