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Petroleum industry

Indonesia Aims to Reduce Oil and Gas Imports by Boosting Refinery Construction

Strategic Insights

— 2 min read

Indonesia's government has announced plans to reduce the country's high fuel oil imports by increasing the construction of oil and petrochemical refineries. The move is aimed at reducing the burden of fuel oil imports and improving the domestic trade system. Chief Economic Minister Hatta Rajasa emphasized the need for the development of petrochemical refineries to reduce the country's reliance on imports of oil and gas.

According to the National Statistics Agency, Indonesia's trade surplus decreased to $1.37 billion in July 2011, down from $3 billion in June. Exports in July were recorded at $17.43 billion, a 5.23% decrease from June but a 39.55% increase from the same period last year. The country's total exports from January to July this year reached $116.04 billion, a 36.51% increase from the same period last year.

Key Takeaways:

  • Indonesia aims to reduce fuel oil imports by maximizing the construction of oil and petrochemical refineries.
  • The government will provide tax holidays for the oil or organic basic chemical refining industry to boost domestic production.
  • Indonesia needs to watch the possibility of a slowdown in China's economy as the country is one of Indonesia's major export destinations.
  • Indonesia's exports in 2011 are expected to reach $200 billion and surpass the 2010 mark.
  • The National Statistics Agency reports a trade surplus of $1.37 billion in July 2011, down from $3 billion in June.
  • Exports in July 2011 were recorded at $17.43 billion, a 5.23% decrease from June but a 39.55% increase from the same period last year.
  • Indonesia's biggest export markets are China, Japan, the United States, ASEAN, and the European Union.
  • The total value of non-oil/gas imports in July 2011 was $12.26 billion.
  • Indonesia's total imports from January to July 2011 reached $99.64 billion, a 31.87% increase from the same period last year.

Statistics:

  • Indonesia's trade surplus in July 2011: $1.37 billion
  • Exports in July 2011: $17.43 billion
  • Non-oil gas exports in July 2011: $3.8 billion
  • Non-oil/gas imports in July 2011: $12.26 billion
  • Total imports from January to July 2011: $99.64 billion
  • Total exports from January to July 2011: $116.04 billion
  • Expected exports in 2011: $200 billion
  • Indonesia's biggest export markets:

+ China: $10.92 billion

+ Japan: $10.44 billion

+ United States: $9.26 billion

+ ASEAN: $19.35 billion

+ European Union: $12.33 billion

Sources:

  • "Indonesia to reduce fuel oil imports through refinery construction" by Asia Pulse, September 7, 2011
  • "Indonesia's July Trade Surplus Down 54% to $1.37 Billion" by Antara, July 8, 2011
  • "Indonesia's Exports in January-July 2011 Reach $116.04 Billion" by Antara, July 8, 2011

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