Jakarta (ANTARA) - Energy and Mineral Resources Minister Bahlil Lahadalia and Russian energy giant Rosneft are currently reviewing investment in the oil refinery project in Tuban, East Java, following an increase in the value of the project.
“Why has (the project) not started yet? After recalculating the investment and economic value, it just does not match. We are still reviewing it,” Lahadalia informed after the Jakarta Geopolitical Forum IX/2025 held by the National Resilience Institute here on Tuesday.
According to him, the project’s investment value has increased significantly from the initial estimate of US$13.5 billion to around US$23 billion–US$24 billion. This increase has been influenced by design factors, land acquisition, and adjustments to geopolitical situations and exchange rates.
He discussed the investment with Rosneft during his visit to Russia, where he accompanied President Prabowo Subianto to a meeting with Russian President Vladimir Putin.
The partnership between Rosneft and Indonesia-owned oil and gas company Pertamina for the construction of the Tuban Grass Root Refinery was established in November 2017.
The project is being run under a joint venture called PT Pertamina Rosneft Pengolahan & Petrokimia (PRPP).
The fuel refinery with advanced technology is estimated to have a crude oil processing capacity of up to 300 thousand barrels per day.
GRR Tuban is capable of producing 10,921 kilotons of fuel per year and 5,060 kilotons of petrochemical products and other petrochemical derivatives per year.
Earlier, President Putin expressed Russia’s readiness to deepen energy cooperation with Indonesia, including expanding the supply of crude oil and liquefied natural gas (LNG) to the country.
“Russian companies are already working effectively in Indonesia, and we are ready to increase oil and LNG supplies to the Indonesian market,” Putin said during a joint press conference with Prabowo in St. Petersburg on June 19, 2025.
Putin also cited the ongoing partnership between Rosneft and Pertamina in the construction of refinery and petrochemical facilities in East Java as a key example of growing bilateral cooperation in the energy sector.
He added that Russia is open to participating in new energy initiatives and the development of oil and gas infrastructure across Indonesia.
