“Refineries may be shutting down because of the energy transition,” he Yuliot told reporters in Jakarta on Friday.
He pointed to China, where vehicles from private cars and public transport to heavy equipment and delivery fleets are rapidly switching to electric power. That shift has cut fuel demand and reshaped the energy market.
“China already uses batteries for about 50 percent of its vehicles. More than 60 percent of its fuel stations have shut down,” Yuliot said.
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His comments followed remarks from PT Pertamina Vice President Oki Muraza, who projected that 17 refineries could close globally by 2030.
According to Oki, the closures reflect growing challenges for the oil industry, including a slump in crude prices, which have fallen from an expected $82 a barrel to about $66.
He added that oversupply was compounding the problem — not only of crude oil but also of refined products.
“This is what makes refinery profitability so low. It has become a major challenge for Pertamina and other energy firms, both domestic and international,” Oki said.
With refinery margins thinning, Pertamina has moved to consolidate three of its subsidiaries: Pertamina Kilang Internasional, Pertamina Patra Niaga, and Pertamina International Shipping.
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Translator: Putu Indah, Kuntum Khaira Riswan
Editor: Rahmad Nasution
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