TEMPO.CO, Jakarta - The Indonesian government is planning a joint investment with the United States for the construction of an oil refinery. This initiative is part of a broader commitment to collaboration between the two nations, according to Minister of Investment/Head of the Investment Coordinating Board (BKPM), Rosan Perkasa Roeslani.
"This refinery investment is indeed one of the collaborative commitments that we want to undertake together with American companies," Rosan said during a virtual press conference broadcast on YouTube on Tuesday, July 29, 2025.
Rosan, who also serves as the Chief Executive Officer of Danantara, explained that a key part of the reciprocal trade agreement is importing crude oil from the U.S. Therefore, a new refinery is needed to process the specific type of crude oil from the United States. "This is a business process and it will not be a burden to us," he added.
Currently, Indonesia primarily imports crude oil from Nigeria and Saudi Arabia. If this new investment goes through, the majority of its crude oil imports would shift to the U.S.
Rosan stressed that the investment plan is still in the technical discussion phase and must comply with all Indonesian regulations. "We will ensure that everything proceeds in accordance with the regulations in Indonesia," he added.
The Framework for the Reciprocal Trade Agreement between Indonesia and the U.S. was announced in a joint statement at the White House on Tuesday, July 22, 2025. In the agreement, Indonesia committed to eliminating approximately 99% of its tariffs on industrial and agricultural products from the U.S.
"The United States will reduce to 19 percent the reciprocal tariffs, as set forth in Executive Order 14257 of April 2, 2025, on originating goods of Indonesia," wrote the official release on the whitehouse.gov website cited on Wednesday, July 23, 2025.
The agreement also includes the elimination of non-tariff barriers on U.S. products and a deal for the import of energy products, including gas, crude oil, and gasoline, valued at US$15 billion.
Anastasya Lavenia contributed to the writing of this article.
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