Indonesia's Coordinating Minister for Maritime and Investment Affairs, Luhut Binsar Pandjaitan, on Friday, June 23, announced plans to set up an oil refinery in Kenya.
The refinery will be a branch of Pertamina - an Indonesian state-owned oil and natural gas corporation that seeks to set up a base in East Africa. Pertamina reported a Ksh533.7 trillion (USD3.8 billion) in net income for 2022 amid higher output.
"Pertamina will enter Kenya after being asked to establish an oil refinery there. We also see an opportunity to bring their crude oil to Indonesia," Binsar told Antara News, an Indonesian media house.
The minister explained that the plans were underway and more details will be released after subsequent meetings with Kenyan authorities.
"We are still finalising it, and there will be meetings (about it) if I am not mistaken," he told the media house.
According to the minister, Indonesia hoped to be allowed to export oil to cater to the high demand in their country.
The minister explained that Indonesia looked forward to exploring investment opportunities in renewable energy, sustainable development, and industrialisation.
"Kenya is expected to be the hub for the production and distribution of Indonesian products in the Eastern African region," Pandjaitan emphasised.
The deal aligns with President William Ruto's plan to provide Kenyans with cheaper oil and petroleum products.
One of the measures Ruto took to cushion Kenyans from the high prices was to import cheap oil from Arab countries under the government-to-government (G-to-G) program.
However, Kenyans are yet to experience the drop in prices. Currently, a litre of Super Petrol, Diesel, and Kerosene is retailing at Ksh182.04, Ksh167.28, and 161.48, respectively.
On May 9, Trade Cabinet Secretary embarked on a three-day trip to Indonesia to engage the leaders in different trade deals.
Several companies eying the multi-billion deals are set to tour Kenya and meet their counterparts.
"They will also revisit Kenya in July (2023) when Indonesian President Joko Widodo is scheduled to visit," Kuria remarked.
