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    Faradila
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    Achieving energy independence is a matter. There are three major factors which must be considered, specifically: (1) accessibility; means the ability to gain access to energy, (2) purchasing power means the ability of people to purchase energy and (3) the supply means availability of energy itself. Indonesia, actually, contrived steps to achieve energy independence especially fuel. In 2018, the Government through State-Owned Entreprise, PT Pertamina (Persero), designed Grass Root Refinery and Re

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    Achieving energy independence is a matter. There are three major factors which must be considered, specifically: (1) accessibility; means the ability to gain access to energy, (2) purchasing power means the ability of people to purchase energy and (3) the supply means availability of energy itself. Indonesia, actually, contrived steps to achieve energy independence especially fuel. In 2018, the Government through State-Owned Entreprise, PT Pertamina (Persero), designed Grass Root Refinery and Re

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    © All Rights Reserved
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    91 views4 pages

    Indonesia Energy Independence

    Uploaded by

    Faradila
    Achieving energy independence is a matter. There are three major factors which must be considered, specifically: (1) accessibility; means the ability to gain access to energy, (2) purchasing power means the ability of people to purchase energy and (3) the supply means availability of energy itself. Indonesia, actually, contrived steps to achieve energy independence especially fuel. In 2018, the Government through State-Owned Entreprise, PT Pertamina (Persero), designed Grass Root Refinery and Re

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    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 4

    Chemical Engineering

    January 6th 2023

    ENERGY INDEPENDENCE :

    INDONESIA NO
    LONGER NEEDS
    TO IMPORT FUEL
    IN 2026 (?)
    by: Faradila AT

    Achieving energy independence is a matter. There are


    three major factors which must be considered, specifically:
    (1) the accessibility to gain access of energy, (2) the ability
    of people to purchase energy and (3) the availability of
    energy itself. Indonesia, actually, contrived steps to
    achieve energy independence, especially fuel. In 2018, the
    Government through its State-Owned Entreprise, PT
    Pertamina (Persero), designed Grass Root Refinery and
    Refinery Development Projects. Some of these Projects are
    still under construction right now.

    1
    Chemical Engineering 2

    To increase national energy security, the Government through PT Pertamina


    (Persero) is working to build 2 (two) new oil refineries (Grass Root Refinery/GRR)
    in Bontang and Tuban. The government is also developing the capacity of
    existing refineries (Refinery Development Master Plan/RDMP) in Dumai,
    Balikpapan, Balongan and Cilacap.

    The Projects will increase refinery capacity, improve product quality, and reduce
    the cost of production of fuel oil which will boost foreign exchange and tax
    revenues. This effort was carried out in the framework of realizing energy
    independence and reducing the trade balance deficit or Current Account Deficit
    (CAD), by significantly reducing imports of petroleum and petrochemical
    products (Pertamina, 2021). Pertamina hopes that through this project, the
    Government's target to stop fuel imports in 2026 can be fulfilled. A simple profile
    of the Project can be seen below.

    Project Investment
    Value (Capital Expenditure) Rp 214.16 Trillion
    Cilacap, Central Java
    Balongan, West Java
    Location Dumai, Riau
    Balikpapan, East Kalimantan
    Plaju, South Sumatera

    Project Scheme SOE (PT Pertamina (Persero)) Assignment

    Source of Funding 40% from equity

    Construction (start)
    2018

    Operation (Start) Gradually until 2026

    Construction
    Project Status
    Source: KPPIP, 2022

    Image Source: Private Documentation


    Image Source: Private Documentation

    The government prepares this fuel demand projection assuming an


    increase in demand of 3.16% per year. This table shows demand
    projections and fuel production conditions.

    Domestic
    Demand Refinery Import (Million Supply from New
    Year (Million Products and/or Expansion
    Kiloliters) (Million Kiloliters) Plant
    Kiloliters)

    2022 74.7 47.8 25.9 RDMP Balongan

    2023 77.3 57.5 25 RDMP Balikpapan

    2024 80 57.5 25.9 -

    2025 82.5 68.1 13.4 GRR Bontang*

    RDMP Cilacap,
    GRR Tuban,
    2026 85 85 0 RDMP Dumai
    RDMP Riau
    RDMP Plaju

    Source: ESDM, 2020


    *GRR Bontang Project is in the finalization stage of deciding whether to continue the project.

    Chemical Engineering 3
    If these Projects are completed, the refinery's current
    capacity of 1 million barrels per day will double to 2
    million barrels per day. With the completion of the
    RDMP/GRR, Pertamina hopes to achieve the
    Government's target of stopping fuel imports by 2026.
    We hope it would be the best way to design the energy
    independence and sustainable in my country.

    Chemical Engineering 4

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