Indonesia’s Minister to Establish Kenyan Oil Refinery
Luhut Binsar Pandjaitan, Indonesia’s Coordinating Minister for Maritime and Investment Affairs, announced plans to establish an oil refinery in Kenya on Friday, June 23.
Pertamina, an Indonesian state-owned oil and natural gas company, intends to establish a base in East Africa. In 2022, Pertamina reported a net income of Ksh533.7 trillion (USD3.8 billion) due to increased output.
Pertamina will enter Kenya in response to a request to build an oil refinery there. We also see an opportunity to import their crude oil into Indonesia, Binsar told the Indonesian news outlet Antara News.
The minister explained that the plans are in progress and that additional information will be released following future meetings with Kenyan authorities.
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“We are still finalizing it, and if I am not mistaken, there will be meetings,” he told the media outlet.
According to the minister, Indonesia desired permission to export oil to meet the country’s high demand.
The minister stated that Indonesia was eager to investigate investment opportunities in renewable energy, sustainable development, and industrialization.
Pandjaitan emphasized that Kenya is expected to serve as the production and distribution hub for Indonesian goods in Eastern Africa.
The agreement is consistent with President William Ruto’s plan to offer Kenyans cheaper oil and petroleum products.
Under the government-to-government (G-to-G) program, Ruto imported cheap oil from Arab nations to protect Kenyans from high prices.
Kenyans have not yet experienced the price decrease. The current price per liter of Super Petrol, Diesel, and Kerosene is Ksh182.04, Ksh167.28, and Ksh161.48, respectively.
The Trade Cabinet Secretary embarked on a three-day trip to Indonesia on May 9 to negotiate various trade deals with Indonesian leaders.
Multiple companies interested in multibillion-dollar deals will tour Kenya and meet with their counterparts.
Kuria remarked, “They will also return to Kenya in July 2023, when Indonesian President Joko Widodo is scheduled to visit.”
Indonesia’s Minister to Establish Kenyan Oil Refinery
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