Jakarta. The Indonesian government plans to construct oil refineries with a capacity of 1 million barrels per day (bpd) each in multiple locations, Energy and Mineral Resources Minister Bahlil Lahadalia announced on Monday.

The new refineries will be built across Indonesia’s major islands, including Kalimantan, Java, Sulawesi, Maluku, and Papua, ensuring a balanced distribution of energy infrastructure nationwide.

Initially, the government projected a capacity of 500,000 bpd per refinery but later doubled the target to 1 million bpd.

"Each refinery will have a 1 million bpd capacity and will be strategically located in Kalimantan, Java, Sulawesi, Maluku, and Papua to ensure equal distribution of energy resources," Bahlil said during a press conference at the Presidential Palace in Jakarta.

In addition to oil refineries, the government also plans to develop storage facilities for refined oil products to enhance energy security and efficiency.

Bahlil further emphasized the government's commitment to developing alternative energy sources, particularly dimethyl ether (DME) from coal, as a substitute for liquefied petroleum gas (LPG).

"Furthermore, we will invest in solar panel production and quartz sand processing, converting it into critical minerals, which will serve as a comparative advantage for our nation in the global market," he concluded.

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