RI Still Collaborating with Russia on Tuban Refinery Project Progress
- The Tuban Refinery project, a collaboration between Indonesian state-owned oil and gas company Pertamina and Russian oil giant Rosneft, is expected to reach a Final Investment Decision (FID)...
- The project's progress comes despite US sanctions imposed on Rosneft.
- Bahlil's comments suggest indonesia is prepared to navigate the sanctions through alternative financial or logistical arrangements.
pertamina and Rosneft’s Tuban Refinery Project Nears Final Investment Decision
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Published November 10, 2025, 20:27:22
The Tuban Refinery project, a collaboration between Indonesian state-owned oil and gas company Pertamina and Russian oil giant Rosneft, is expected to reach a Final Investment Decision (FID) in early December 2025. Simon, a company representative, stated, “We might see the FID in early December. We will update again.” However,the company plans to announce the results of the FID process at a later date.
US Sanctions and Project Confidence
The project’s progress comes despite US sanctions imposed on Rosneft. Indonesia’s minister of Energy and Mineral Resources (ESDM), Bahlil lahadalia, expressed confidence that the sanctions would not impede the refinery’s construction. Speaking after the 80th Mining and Energy Day Commemoration Ceremony in Central Jakarta on October 24, 2025, Bahlil stated, “Don’t worry, there are many roads to heaven. Don’t worry too much. We’ve got it figured out.”
Bahlil’s comments suggest indonesia is prepared to navigate the sanctions through alternative financial or logistical arrangements. Details of these arrangements have not yet been publicly disclosed.
Background: The Tuban Refinery Project
The Tuban Refinery is a strategic project for Indonesia, aiming to significantly increase domestic refining capacity. Currently, Indonesia imports a substantial portion of its refined petroleum products. The refinery is designed to process crude oil into gasoline, diesel, and other petrochemical products, reducing the country’s dependence on imports and bolstering its energy security.
The project has faced delays and revisions over the years, including changes in the proposed technology and ownership structure. The partnership with Rosneft was formalized in 2022, with Rosneft initially slated to take a significant equity stake. the current status of that equity stake considering the sanctions remains unclear.
potential implications of US Sanctions
While Minister Lahadalia downplayed the impact of US sanctions, they could present challenges in several areas:
- Financing: Access to international financing may be restricted for companies involved with sanctioned entities.
- Technology Transfer: Restrictions on the transfer of US technology to Rosneft could impact the refinery’s construction and operation.
- Supply Chain: Sourcing equipment and materials from US or US-aligned companies could become more difficult.