Indonesia plans quick-to-build oil refineries for US crude, doubts persist
19 August 2025
Time to read: minutes
Additionally, these projects – with a smaller feedstock requirement and terminal restrictions – will likely require the use of smaller vessels to import crude, raising costs significantly, said Sparta Commodities’ senior analyst June Goh.She also warned that the arbitrage may not always be economical for U.S. West Texas Intermediate crude.“If there is no crude flexibility in-built into the modular refinery projects, then Indonesia will be very exposed to the prices of U.S. crude delivered into the country,” she said.
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