The ministry of energy and mineral resources targeting the ratio of imported fuel to the domestic demand fall to 29.69 percent in 2024 from this year around 42 percent of the needs - Photo by Pertamina Office

JAKARTA (TheInsiderStories) – The ministry of energy and mineral resources (MEMR) targeting the ratio of imported fuel to the domestic demand fall to 29.69 percent in 2024 from this year around 42 percent of the needs. The targets wrote in the MEMR regulation Number 16 of 2020 concerning the Strategic Plan of the MEMR for 2020 – 2024.

The rule was signed by the minister, Arifin Tasrif, on Sept. 18 and effective since Sept. 25, 2020. The regulation said, the declining due to an increase o fuel production from the Refinery Development Master Plan (RDMP) project that is being worked  by state-owned energy producer, PT Pertamina.

The reduction is also supported by the government policy of using biodiesel in the transportation sector, the electric vehicle program, the conversion of fuel to gas or biofuel in power plants, the conversion of fuel to liquid petroleun gas for fishing boats, and a gradual reduction in diesel power plants.

However, the crude oil imports to fulfill the domestic demands is estimating rise to 28.80 percent or equal to 109.99 million barrels in 2024 followed the high consumption. This year, the imports was predicted 19.79 percent of the demands or 68.19 million barrels. The ministry sees the demand for crude oil in 2024 increase to 381.94 million barrels from 344.52 million barrels in 2020.

“Efforts are being made to increase the supply of domestic crude oil and diversify sources of oil such as the use of CPO and others,” the regulation stated.

As known, to fulfill the domestic need, the government has urged Pertamina to build the refinery expansion projects. In 2024 – 2025, is targeted that the RDMP Balikpapan project phases 1 and 2 to start operation with an additional capacity of 100,000 to 360,000 barrels per day (bpd) from the current 260,000 bpd.

Then, RDMP Balongan phases 1 and 2 are also targeted to operate with an increase in crude oil processing capacity to 150,000 bpd from now 125,000 bpd. In 2027 it is targeted that other RDMP projects and a new Tuban refinery will operate, so that the crude oil processing capacity will increase to 1.8 million bpd from the current 1 million bpd.

Pertamina estimates that the total investment for this refinery project will reach US$48 billion. This project is aimed at producing fuel products to 1.5 million bpd from the current 600,00 bpd and petrochemical products to 8.6 million tons per year from currently around 1.66 million tons per year.

Written by Editorial Staff, Email: theinsiderstories@gmail.com