Pertamina says additional partners to join GRR Tuban refinery project

By Cepi Setiadi

State-owned oil and gas company PT Pertamina (Persero) said additional partners will join the Grass Root Refinery (GRR) Tuban project in East Java, as the company seeks to accelerate the expansion of national refining capacity and strengthen Indonesia’s energy security.

Pertamina Vice President Director Oki Muraza said the project is designed to boost domestic fuel production, particularly gasoline, with the refinery expected to add around 5 million kilolitres of gasoline to national supply once operational.

“GRR Tuban is being developed to increase national production capacity. Through this project, the gasoline supply gap can be reduced,” Oki said at the CNBC Energy Outlook 2026 event on Thursday (Feb 5).

Oki said the project’s large capital expenditure requirement makes partnerships critical to its execution, prompting Pertamina to open the project to additional investors.

“The unique aspect of this refinery is its very large capex requirement. That is why partnerships are essential,” he said.

Read also: Pertamina targets Tuban Refinery FID in December

The GRR Tuban project is currently at the final investment decision (FID) stage. Oki said Pertamina hopes to complete the FID process soon so the project can move into the next phase.

“The project is still in the FID stage. Hopefully, we can finalise it soon and proceed to the next phase,” he said.

In exploring potential partners, Oki said Pertamina is coordinating with the government, including the Ministry of Energy and Mineral Resources (ESDM), although the project is not part of Indonesia’s new refinery initiative and is not expected to receive financing from Danantara, the country’s sovereign wealth fund.

Pertamina has previously said it remains partnered with Russia’s Rosneft on the project through PT Pertamina Rosneft Pengolahan dan Petrokimia (PRPP), a joint venture between PT Kilang Pertamina Internasional, Pertamina’s refining arm, which holds a 55% stake, and Rosneft, which owns the remaining 45%.

The Tuban GRR, which has completed its front-end engineering design (FEED) stage, is designed to process up to 300,000 barrels of crude oil per day. Once operational, it is expected to produce 80,000 barrels per day of Euro V-standard gasoline, 100,000 barrels per day of gasoil, and 30,000 barrels per day of jet fuel. The project will also include an integrated petrochemical complex with a capacity of about 3.75 million tonnes per year.

The FID for the project has been delayed from its original timeline, with construction now expected to be completed around 2029, depending on the final investment decision and engineering, procurement and construction (EPC) progress.

Editing by Reiner Simanjuntak