By Alexander Miller, consultant in energy markets. Eurasia Business News, July 22, 2025. Article n°1650.
Indonesia is set to sign an $8 billion engineering, procurement, and construction contract with U.S. engineering firm KBR Inc. to build 17 modular oil refineries. This major deal is part of the recent trade agreement between Indonesia and the United States, which also led to a reduction of the threatened U.S. tariff rate on Indonesian goods from 32% to 19%.
The contract is being finalized by Danantara, Indonesia’s sovereign wealth fund, and was disclosed during a private briefing by Airlangga Hartarto, Indonesia’s Minister of Economic Affairs and chief negotiator of the trade deal. The refinery project aims to boost Indonesia’s energy capacity and reduce fuel price risks by increasing domestic refining infrastructure.
This refinery deal complements broader energy cooperation included in the trade pact, which also covers increased Indonesian purchases of U.S. energy, agriculture, and aircraft goods. The initiative underlines Indonesia’s push to accelerate industrial growth and strengthen economic ties with the U.S.
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KBR, Inc. (formerly Kellogg Brown & Root) is a U.S. based company operating in fields of science, technology and engineering. [2] KBR works in various markets including aerospace, defense, industrial, intelligence, and energy.
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© Copyright 2025 – Eurasia Business News. Article no. 1650.
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