KBR Inc. Secures $8 Billion Refinery Contract with Indonesia

In a significant development for KBR Inc., the U.S.-based engineering and construction firm, Indonesian sovereign wealth fund Danantara has announced plans to sign an $8 billion engineering, procurement, and construction contract with KBR Inc. This contract aims to build 17 modular refineries in Indonesia. The deal is part of a broader trade agreement between Indonesia and the United States, which resulted in a reduction of the proposed U.S. tariff rate from 32% to 19%.

The contract was disclosed by Indonesian Economic Minister Airlangga Hartarto during a closed-door briefing with Indonesian business leaders. The plan was also mentioned in an official economic ministry presentation reviewed by Reuters. While some aspects of the trade deal, such as increased energy cooperation, have been made public, the specific contract for the refineries had not been previously reported.

KBR Inc., formerly known as Kellogg Brown & Root, is a prominent player in the construction and engineering sector, serving global markets including aerospace, defense, industrial, and intelligence. The company, which went public in November 2006 on the New York Stock Exchange, has a market capitalization of approximately $6.1 billion as of July 20, 2025. Its stock closed at $45.99 on that date, with a 52-week high of $72.6 and a low of $43.89.

The contract with Danantara underscores KBR’s strategic role in international infrastructure projects and its ability to secure large-scale contracts amid evolving trade dynamics. Both Danantara and KBR Inc. have not yet responded to requests for comment regarding the deal.

In related news, Hazer Group Ltd., an Australian company, has entered into a strategic alliance with KBR to enhance its commercialization strategy. This partnership aims to leverage KBR’s scale and expertise to accelerate the deployment of Hazer’s technology on an industrial scale globally.