The oil and gas refinery industry is seen as a key driver of the economy in its surrounding areas. According to Komaidi Notonegoro, Executive Director of the Reforminer Institute, the industry's benefits are estimated to be nine times the investment value in refinery plants, based on Input-Output (IO) model analysis. This means that if there is an additional investment of IDR 1 trillion in the refinery industry, the potential economic benefits generated throughout Indonesia's economy structure could reach around IDR 9.16 trillion. Notonegoro highlighted that refinery industries have significantly contributed to the economy, acting as a major driving force since the early stages of development in Indonesia.
Furthermore, the presence of refinery plants has catalyzed economic growth, as the government can implement policies such as subsidized fuel prices. Refinery industries still play a crucial role in Indonesia's economy, with data showing their linkage to approximately 93 supporting economic sectors as suppliers and 183 user economic sectors utilizing the refinery products. Notably, about 67.25% of refinery output serves as input or raw materials for the 183 user economic sectors, while the remaining 32.75% is allocated for final demand or consumption unrelated to the production process. The significant role of the refinery industry is evident in its contribution to various economic sectors and its allocation of production output, indicating its vital position within Indonesia's economy.
