December 02, 2019

Indonesia continues its impressive economic growth, but the Indonesian Rupiah experienced a sharp
depreciation in 2019. The country soon encountered a high current account deficit, which finally led
to national budget shortage on import- heavy refining & petrochemical industry development.
Development of mega energy projects then delayed leaving refining capacity bottlenecked, while
continuing to import expensive sweet crude and refined products would deteriorate the fiscal deficit.
However, domestic petroleum and petrochemical demand could never be kept up with.
Regulators are making their efforts to tackle the challenge. To relieve imminent supply burden, they
turn to a wide application of biodiesel. However, the regulators still need to continue improving
regulation and policy incentives to attract more International investment and to draw a clear
roadmap to stick with for the future.
The SEA countries deliberated budget and feedstock shortages in various ways. Aiming the supply side
directly, some governments embraced alternative feedstocks but to which extent it could relief the
financial burden was still uncertain. International operators would bring their experiences of refining
heavy but cheap crudes to the sub-region. IMO 2020 Marine Regulations brought a hard line to the
policy makers, which made it urgent to carry out a feasible plan to implement. As for the SEA
operators, collaborating with International partners was more like a necessity for longer term
growths. They bring not only funds and crude to the region, but also a probable paradigm shift to the
industry with new thoughts and technologies.
The 6th ASEAN Refining & Petrochemical Forum will once again aim to explore strategies against
issues and challenges mentioned above. You will be able to network with regulators and policy
makers, refinery and petrochemical producers, International investors & operators, EPCs, technology
licensors, and thought leaders.
(6th Asean Refining & Petrochemical Forum)