Exclusive-Indonesia plans $8 billion refineries contract with US firm amid tariffs deal, sources say

Stefanno Sulaiman and Dewi Kurniawati

Tue, Jul 22, 2025, 4:21 AM 1 min read

By Stefanno Sulaiman and Dewi Kurniawati

JAKARTA (Reuters) -Indonesian sovereign wealthiness money Danantara plans to motion an $8 cardinal engineering, procurement and operation declaration with U.S. engineering steadfast KBR Inc to physique 17 modular refineries, according to 2 sources acquainted with the substance and an authoritative economical ministry presumption seen by Reuters.

The declaration is portion of past week's commercialized pact betwixt Indonesia and the United States that led to a simplification successful the threatened U.S. projected tariff complaint to 19% from 32%.

Indonesian Economic Minister Airlangga Hartarto, the main negotiator of the deal, disclosed the modular refinery program during a closed-door briefing to Indonesian concern leaders connected Monday evening. Two sources confirmed the planned woody was mentioned successful a presumption that Reuters besides reviewed.

Danantara and KBR Inc, formerly known arsenic Kellogg Brown & Root, did not instantly respond to requests for comment.

While immoderate details of the commercialized woody betwixt the United States and Indonesia person been made public, specified arsenic for accrued vigor cooperation, the projected declaration for refineries has not antecedently been reported.

(Reporting by Stefanno Sulaiman and Dewi Kurniawati; Writing by Gibran Peshimam; Editing by Stephen Coates)