PT Pertamina (Persero) confirms that the national strategic project (PSN) Refinery Development Master Plan (RDMP) Balikpapan aligned with Indonesia's energy transition roadmap.

The Balikpapan RDMP project will become an environmentally friendly refinery as it can significantly reduce emissions through energy efficiency in operations and the production of future products, thereby supporting the government's net-zero emission program.

As one of the largest investment project, the Balikpapan RDMP brings a multiplier effect for regional economic growth by involving local companies, creating local job opportunities, and targeting a Domestic Component Level (TKDN) of 30-35%.

Upon completion of the project, it is projected to save the current account by US$ 2.5 billion per year from petroleum products, LPG, and petrochemicals.

Pertamina, through its Sub Holding Refining & Petrochemical PT Kilang Pertamina Internasional (KPI), held the closing ceremony for Project Financing of the Balikpapan RDMP on Friday, June 23, 2023. The project's development funding has gained trust and support from 4 Export Credit Agencies and 22 commercial creditors, with total value of USD 3.1 billion to be disbursed to PT Kilang Pertamina Balikpapan (KPB).

Deputy Minister of state-owned Enterprises, Pahala Nugraha Mansury, stated that the energy sector is crucial for economic development as no activities can occur without energy support.

"The successful financing of the Balikpapan RDMP Project is undoubtedly an achievement for Pertamina, KPI, and KPB. It is currently the largest project financing in Indonesia, and even the commitments from the creditors have experienced an over-subscription of up to 42 percent," said Pahala.

Pahala added that this achievement proves that Pertamina is considered a trusted global energy company and demonstrates the project's magnitude and strategic importance.

"That is why we believe in Pertamina's ability to complete the Balikpapan RDMP project. It would increase production from 260,000 barrels per day to 360,000 barrels. This is very important for us and for Indonesia," said Pahala.

Nicke Widyawati, President Director of PT Pertamina (Persero), evealed that the Balikpapan RDMP Project will become a modern and environmentally friendly refinery by reducing carbon emissions through operational energy efficiency and its products.

"The Balikpapan Refinery will be able to process almost all types of crude oil, with advanced processing capabilities, enabling us to search for crude oil more efficiently and at a lower cost, even those with high sulfur content. The quality of the products will improve from Euro 2 to Euro 5," said Nicke.

According to Nicke, Pertamina's efforts to complete the Balikpapan RDMP were not hindered by the Covid-19 pandemic that has been ongoing since 2020. The construction of the refinery has been in progress and currently stands at a progress rate of 74%, with a strong emphasis on maintaining safety and security measures.