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Indonesia plans quick-to-build oil refineries for US crude, doubts persist

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Published19 AUG 25 - 08:41 Reading time  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.

Reuters, August 19, 2025 – Indonesia plans modular refineries to process U.S. crude under a $15B energy deal, aiming to cut its $36B gasoline imports, but analysts doubt the economics given past delays and inefficiency versus larger plants.

Topics Crude
Author

June Goh

Senior Oil Market Analyst

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