Indonesia Oil and Gas Downstream Market Size and Share - Growth Analysis Report and Forecast Trends (2026-2035)

The Indonesia oil and gas downstream market was valued at USD 69.49 Billion in 2025. The market is expected to grow at a CAGR of 7.10% during the forecast period of 2026-2035 to reach a value of USD 137.98 Billion by 2035. The country’s refinery development and integrated petrochemical investments aim to increase domestic fuel availability while also encouraging international energy cooperation through expanded energy supply infrastructure projects across the archipelago.

Key Market Trends and Insights

• By type, the petrochemical category is expected to record a CAGR of 7.6% over the forecast period.
• Industrial end users are expected to exhibit a CAGR of 7.7% over the forecast period.
• Refinery modernization and biofuel blending mandates are two major trends shaping the Indonesia oil and gas downstream market.

Market Size & Forecast

• Market Size in 2025: USD 69.49 Billion
• Projected Market Size in 2035: USD 137.98 Billion
• CAGR from 2026 to 2035: 7.10%

An increase in manufacturing activities involving direct consumption of fuel, and on the other hand, growing support for petrochemical integration of oil refineries are the two factors that have contributed to the overall Indonesia oil and gas downstream market growth dynamics. While manufacturing zones such as West Java and Banten require uninterrupted diesel and LPG supply for their logistics and production facilities, refineries are considering further development of petrochemical units as the way to reach higher value of each processed barrel. Besides, these initiatives enable enterprises not only to extend their sources of revenues but also to minimize their dependency on imported petroleum products.

Further, the Indonesia oil and gas downstream market is undergoing an active and visible period of changes as state-owned energy companies speed up upgrading refineries and fuel distribution digitalization. The latest major movement in this area was in June 2023 when PT Pertamina (Persero) got its Refinery Development Master Plan (RDMP) for the Balikpapan refinery to a new level. This time hydrocracking plants, which are capable of processing heavy crudes and producing clean Euro V fuels, were the focus of the project.

Moreover, companies are rolling out digital systems to monitor fuel in logistics terminals and service stations. They have been carrying on with the incorporation of real-time technology to check tanker delivery and automation of fuel stock management. These systems play a part in reducing supply leakages and promoting a higher level of transparency in fuel indigenization programs, accelerating the Indonesia oil and gas downstream market value. For B2B players related to refining, storage, and distribution, these digitization programs are continuously raising the bar for operational standards within the Indonesian energy sector. In November 2025, Indonesia invited investors to develop 75 new oil and gas blocks across regions including Papua and Sulawesi to boost domestic exploration and energy production.

Key Trends and Recent Developments

February 2026 - Danantara Announced USD 7 Billion Natural Resources Processing Projects in Indonesia

Indonesia’s sovereign investment entity Danantara launched natural resources processing projects worth USD 7 billion, focusing on refining, downstream processing, and value-added energy infrastructure development. Such initiatives create opportunities for energy companies to participate in refinery upgrades and petrochemical processing.

February 2026 - Eni Prepared Approval for Two Offshore Gas Projects in Indonesia

Eni moved closer to approving two offshore gas developments in Indonesia, aimed at strengthening regional gas supply and supporting long-term downstream energy processing capacity. These developments in the Indonesia oil and gas downstream market open opportunities for service providers and infrastructure companies to support gas processing.

January 2026 - Indonesia Introduced Six Downstream Energy Projects Including Coal Gasification

Indonesia announced six downstream energy projects including coal gasification facilities designed to produce methanol and strengthen domestic petrochemical feedstock supply chains. This initiative offers Indonesia oil and gas downstream market opportunities for chemical producers and technology providers to collaborate on methanol production and integrated projects.

November 2025 - Newco Prepared Regional Expansion to Support Energy Infrastructure Growth

Energy infrastructure company Newco initiated regional expansion plans aimed at strengthening service capabilities for oil, gas, and downstream industrial developments in Southeast Asia. Such expansion highlights opportunities for engineering firms and logistics providers to support refinery construction, storage terminals, and downstream energy distribution networks.

Refinery Modernization and Capacity Expansion

The modernization of refineries has a major impact on Indonesia's downstream sector. The government has motivated the national oil companies to renovate the old plants so that they can produce cleaner fuels and more valuable petrochemical products. For example, PT Kilang Pertamina Internasional is the one that has released the most refinery upgrades within the RDMP program, accelerating the Indonesia oil and gas downstream market trends. In June 2023, Pertamina finalized a USD 3.1 billion financing agreement with export credit agencies and banks to expand Balikpapan refinery capacity and produce cleaner Euro V fuels. The projects at Balikpapan and Cilacap are aimed at enhancing the crude flexibility and increasing the production of gasoline and diesel.

Petrochemical Integration Strategies

Firms are investing in downstream complexes that can turn out aromatics, propylene, and polymer feedstocks, propelling the Indonesia oil and gas downstream market growth. The aim of the project is to be able to handle thousands of barrels of crude daily and at the same time, produce petrochemical intermediates needed for the manufacturing of plastics and industrial materials. In March 2025, Indonesia announced plans of constructing a 500,000 b/d oil refinery costing about USD 12.5 billion, processing domestic and imported crude to strengthen downstream capacity and energy security. These kinds of integrated plants allow the maximization of the refinery margins and the reduction of Indonesia’s dependence on imported petrochemical products, mainly used by domestic manufacturers.

Digital Fuel Distribution and Smart Logistics

Fuel distribution downstream in Indonesia is increasingly becoming digitalized, covering the extensive archipelago of Indonesia. The providers of fuel logistics are bringing in the use of monitoring technologies for the management of the supply flows between terminals, pipelines, and retail stations. PT Pertamina Patra Niaga has increased the coverage of its digital fleet monitoring and fuel tracking platforms to enhance the transparency of the fuel distribution networks throughout the country. These systems allow real-time information on tanker movements and storage levels, creating new Indonesia oil and gas downstream market opportunities. In August 2025, the country launched a multiparty gas swap system redirecting about 27 Btu/day from West Natuna suppliers to domestic distributor PGN, stabilizing industrial gas supply.

Expansion of Strategic Fuel Storage Infrastructure

Recent emphasis on energy security has led to increased investments in strategic fuel storage facilities, reshaping the overall trends in the Indonesia oil and gas downstream market. The Indonesian Ministry of Energy has even stressed the need for larger national stockpiles as a measure to counter sudden supply disruptions and sharply fluctuating prices. Expanding storage terminals is one of the activities taking place near major ports and refining centers. Bulk fuel terminal operators are not only increasing tankage capacity but also enhancing their facilities with automated safety and monitoring systems. For instance, in March 2026, Bahlil confirmed private funding for Indonesia’s new oil storage facilities, supporting strategic petroleum reserves expansion and strengthening national energy security infrastructure capacity.

Clean Fuel Standards and Low Sulfur Product Development

Environmental regulations are acting as a key driving factor for the refinery industry to enhance fuel quality. Indonesia is aligning its fuel standards with European regulations, including Euro IV and Euro V emission standards. This kind of legislation mandates major refinery expenditure on hydrotreating and desulfurization methods, boosting the Indonesia oil and gas downstream market penetration. PT Pertamina (Persero) has launched new processing lines designed to generate environmentally friendly diesel and petrol with minimal sulfur levels. The movement to use cleaner fuels is creating opportunities for technology suppliers, catalyst producers as well as engineering companies working on refinery improvements throughout Southeast Asia. For example, in December 2025, SumiSaujana signed an MoU with PT Kilang Pertamina Internasional to develop a wet gas sulphuric acid facility converting refinery gases into commercial sulphuric acid and recovered heat energy.

Indonesia Oil and Gas Downstream Industry Segmentation

The EMR’s report titled “Indonesia Oil and Gas Downstream Market Report and Forecast 2026-2035” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Refining
• Petrochemical

Key Insight: As per the Indonesia oil and gas downstream market report, the industry is largely focused on refining and petrochemical activities, with refining taking a dominant role due to the country's need to secure a reliable fuel supply for transportation and power generation. Moreover, petrochemical production continues to be on the rise, as companies try to gain the highest amount of value from refinery operations. The rising industrial demand for plastics, polymers, and specialty chemicals is also pushing the development of integrated downstream complexes. In August 2023, Chandra Asri partnered with Bank Rakyat Indonesia to provide financing facilities for domestic polymer customers, supporting downstream petrochemical expansion and strengthening Indonesia’s industrial supply chains.

Market Breakup by End User

• Residential
• Commercial
• Industrial

Key Insight: Residential, commercial, and industrial consumers generate end-user demand in the Indonesia oil and gas downstream market. Industrial users have become predominant owing to the increasing number of manufacturing plants, mining sites, and large-scale transport fleets that mainly require fuel. As businesses grow, demand for commercial products is expected to rise, especially through aviation, shipping, and logistics activities along Indonesia's trade corridors. Residential consumption is expected to remain stable since it is primarily associated with household LPG and small-scale energy needs.

Indonesia Oil and Gas Downstream Market Share

The refining category accounts for the largest share of the market due to national fuel security priorities

Refining continues to be dominant across the Indonesia oil and gas downstream market dynamics. The country imports a significant share of its refined fuels, making the expansion of domestic refining capacity a key government priority. Companies are refurbishing their old refinery facilities to be capable of processing heavier crudes and producing environmentally friendly gasoline and diesel. Further developments within refinery transformation programs include hydrocracking units, desulfurization technologies, and advanced catalysts. These enhancements enable operators to maximize the value derived from each barrel of refined products. In November 2025, GS Caltex and POSCO launched a palm oil refinery in Indonesia with 500,000-ton capacity, producing biodiesel feedstock and refined edible oils.

Petrochemical integration has become a major strategic priority of the Indonesia oil and gas downstream market players. The operators of refineries are increasingly orienting the evolution of their refining operations to link petrochemicals production divisions in order to give them access to elevated margin products. Aromatics, propylene derivatives, and polymer feedstocks are expected to gain strong attention due to rising demand from Indonesia’s plastics, packaging, and automotive industries. Integrated refinery, petrochemical complexes provide companies with the opportunity to growth their revenue rather than be dependent solely on fuels.

By end user, the industrial sector secures the dominant market share due to fuel demand from manufacturing and logistics

Industrial consumers largely contribute to the Indonesia oil and gas downstream market revenue. Manufacturing plants, mining operations, and heavy logistics networks depend on diesel, LPG, and other petroleum-based fuels. Industrial zones around Java, Sumatra, and Kalimantan depend on a stable supply of fuel to maintain production and transportation of goods. Firms which operate refinery and distribution terminals are opting to prioritize long-term supply agreements with industrial buyers. For example, in October 2024, Linde began supplying oxygen and nitrogen from a USD 120 million air separation unit to PT Freeport Indonesia’s copper smelter in Manyar.

Airlines, shipping operators, logistics providers, and commercial transport fleets are consuming more fuel as trade and tourism activities recover. Demand for aviation fuel has become a crucial issue for downstream operators serving major airports. Accordingly, energy companies are enhancing supply infrastructure close to logistics hubs and transportation corridors. In addition, retail fuel networks are changing, with companies trying out digital payment systems and automated fuel dispensing technologies among others.

Competitive Landscape

The sector is influenced by refinery modernization, expansion of fuel distribution, and petrochemical integration. Leading Indonesia oil and gas downstream companies in the industry are continuously investing in upgrading their refineries enabling them to process different types of crude and producing cleaner fuel. Besides, fuel distribution networks are being digitalized whereby companies have installed monitoring systems to keep track of fuel logistics throughout Indonesia's large archipelago.

Foreign oil companies are partnering with local companies to set up integrated petrochemical plants. This enables operators to manufacture chemical derivatives of greater value in addition to traditional fuels. Indonesia oil and gas downstream market players are also diving into the production of low sulfur fuels and sustainable aviation fuels as part of their compliance to changing environmental laws. For technology providers and engineering firms, refinery enhancement and storage facility upgrading are the main targets.

PT Pertamina (Persero)

PT Pertamina, the largest energy company in Indonesia and leader in the downstream sector, was established in 1957 and is based in Jakarta. The company owns and operates several refineries, fuel terminals, and distribution networks. Pertamina modernizing refineries and expanding petrochemical integration as a way to reduce the import of fuel while strengthening domestic fuel security.

TotalEnergies SE

Founded in 1924 and based in Paris, France TotalEnergies SE entered Indonesia's downstream sector through fuel marketing and lubricant businesses. The company drives focus on high-performance lubricants and enhanced fuel solutions suitable for industrial machinery and commercial transportation fleets operation throughout Southeast Asia.

Shell Plc

Shell Plc is a company that was founded in 1897 and is based in London, United Kingdom. It operates fuel stations and lubricant businesses in Indonesia. The company emphasizes premium fuel products and digital retail service models. Shell has also launched high-performance lubricant formulations for automotive and industrial engines.

Chevron Corp.

Established in 1879 and headquartered in Texas, United States, Chevron Corp. maintains its presence in Indonesia through energy partnerships and technology collaboration. The company focuses on supplying specialized fuel solutions and supporting energy infrastructure projects that enhance supply reliability across regional fuel networks.

Other key players in the market include Eon Mobil Corp., PT Perusahaan Gas Negara TBK, PT Samator Indo Gas Tbk, and PT AKR Corporindo Tbk, among others.

Key Highlights of the Indonesia Oil and Gas Downstream Market Report

• Insights into refinery modernization, petrochemical integration, and digital fuel distribution innovations.
• Detailed competitive landscape profiling national and international energy companies.
• Strategic evaluation of industrial, commercial, and residential fuel demand patterns.
• Investment-focused analysis highlighting emerging opportunities in refining upgrades and storage infrastructure development.