Is Indonesia’s Small Refineries Plan for U.S. Crude Viable?

Indonesia plans to build more than a dozen small modular refineries to process growing volumes of U.S. crude but analysts have expressed concerns that the plan may not be viable and could limit the refining mix and profits of the biggest economy in Southeast Asia. Reports emerged last month that Indonesia was preparing to sign an $8-billion contract with U.S. engineering company KBR Inc to help it build 17 modular refineries, as part of the U.S.-Indonesia trade deal. In the middle of July, Indonesia and the United States reached a trade…