Key insights and market outlook
The Cilamaya LPG refinery project is 85% complete and is expected to start commercial operations by January 2026. Located in Karawang, West Java, the refinery will have a capacity of 40 million standard cubic feet per day (MMSCFD). This project is part of Indonesia's strategy to reduce LPG imports and enhance energy security. The refinery is expected to contribute significantly to the national LPG supply, currently meeting 75-80% of domestic needs through imports.
The Cilamaya LPG refinery, located in Karawang, West Java, is nearing completion with 85% progress in Engineering, Procurement, and Construction (EPC). The project is on track to begin commercial operations by January 2026, marking a significant milestone in Indonesia's energy sector development.
The refinery is designed with a capacity of 40 million standard cubic feet per day (MMSCFD), representing a substantial addition to Indonesia's LPG production capabilities. Currently, the country meets 75-80% of its LPG demand through imports, with annual requirements ranging between 6.5 to 7 million tons. The Cilamaya refinery is expected to significantly reduce this dependence on foreign LPG supplies.
Project Manager Hidayat emphasized that the Cilamaya LPG refinery is a concrete step towards achieving energy security. "The refinery is designed to provide a significant contribution to the national LPG supply while strengthening energy resilience," Hidayat stated. The project aligns with the government's vision to reduce import dependency and enhance domestic energy production capabilities.
The development of the Cilamaya LPG refinery is part of the Indonesian government's broader strategy to reduce reliance on imported energy resources. By investing in domestic refining capacity, the government aims to improve energy security and stabilize supply chains. This initiative is expected to have positive implications for the national economy and energy market stability.
LPG Refinery Completion
Energy Infrastructure Investment
Import Substitution Initiative